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

Should You Rent Or Buy? And Why #wealth #money #realestate #lifeinsurance #mortgage #home #shorts

Name: Should You Rent Or Buy? And Why #wealth #money #realestate #lifeinsurance #mortgage #home #shorts
Uploaded: 2023-02-23T20:29:40+00:00
Duration: 55 s
Channel: Brad Hart
Description: Brad Hart (YouTube) explains how the decision to rent or buy is reducible to a math comparison. He uses his personal example: bought a home for $490,000…

23 Feb 2023 · 1 min

Watch on YouTube

0:55

Brad Hart (YouTube) explains how the decision to rent or buy is reducible to a math comparison. He uses his personal example: bought a home for $490,000 about 1.5 years prior with 5% down and a 2.5% 30-year mortgage (~$2,300/month), while comparable rents in the area run about $4,000–$5,000/month. He emphasizes cheap financing, inflation reducing real future mortgage burden, and advises viewers to run the numbers for their own situations.

Questions this video answers

$490,000

5% down

2.5% interest rate for 30 years

$2,300 per month (approx.)

$4,000–$5,000 per month

Chapters

Should I rent or should I buy? And why renting versus buying comes down to a math equation. Is your money better off working in your home or somewhere else? Let's take this home that I'm sitting in for an example. We were able to buy this home for $490,000 about a year and a half ago. And we were able to lock in a 2.5% interest rate for 30 years. So we had to put 5% down, and we were able to lock in 2.5% on our mortgage for 30 years, which means our mortgage payment something like $2,300 a month to rent a similar house in this area would be four to $5,000 a month. You're not going to get cheaper money than that. So we happen to be in a perfect cycle on the market where we're able to buy at a good price, get a good deal on the mortgage, and get really cheap money that by the time we pay it off in 30 years will be worth half or less due to inflation. For us, it's a slam dunk. But it might not be, depending on your situation. Absolutely. Run the math. Look at what it takes to buy. It really just comes down to the math. It's not magic, people, it's just math.