Brad HartI help 7-8 figure entrepreneurs scale faster with AI, masterminds, and results-driven systems | Founder of Optimus & Repurposefully

Should you BUY or RENT right now? #makemoremarbles #smartinvesting #financialliteracy #howtogetrich

Name: Should you BUY or RENT right now? #makemoremarbles #smartinvesting #financialliteracy #howtogetrich
Uploaded: 2022-11-21T00:18:24+00:00
Duration: 55 s
Channel: Brad Hart
Description: Brad Hart says the rent-or-buy question comes down to one number: what percentage of your net income goes to housing. He recommends 30% or less, and…

21 Nov 2022 · 1 min

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Brad Hart says the rent-or-buy question comes down to one number: what percentage of your net income goes to housing. He recommends 30% or less, and walks through scenarios where renting costs 15% versus buying at 28%, stressing that regional differences and your long-term goals matter more than the choice itself.

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Should you rent or buy right now? What's the smart move in your journey to build wealth? When it comes to renting versus buying, you're actually asking the wrong question. What you want to ask yourself is how much money do I want to spend on housing? If you don't want to become house poor, then you need to spend 30% or less of your net income on housing. And less is the key. If you spend more than 30%, you are on track to building wealth. And if you spend more than 30%, you're way off track to building wealth. If you can rent for the next two years on 15% of your income, that might be smart. But let's say you buy a house but it costs you 28% of your income, that's 13% more. But you're now investing in the home and you get all of the tax benefits and appreciation from it. The numbers are always a little different for everyone. Do your own research, run the numbers and build long term wealth with smart decisions. Buying can be a great long term decision or the worst financial decision you'll ever make. It just depends on where you live and what your outcome that you're going for is. So make friends with math. Another one of those great decisions is to follow me here.