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Renting vs Buying a Home

Renting​

  • Never ever buy a second hand AC
  • Never get a top floor apartment

Buying vs Renting Home / Buy vs Rent / Rent vs Buy​

  • People spend more on their own home, so cost of living increases
  • If you have a small kid, live in rented home, so you don't care more for walls, etc
  • Unrecoverable cost of owning vs buying
    • Property Taxes, Maintenance costs, cost of capital
  • Take the value of the home that you are considering multiply by 5% and divide by 12
  • Never buy a home, don't buy a land too
    • Land is not that scarce, world has too much land (Africa is 9 times of India) because house depreciates in value, but land appreciates in value land is a commodity, house is a consumer good