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Do not rent your own home. Warning, there are a lot of American influencers, um, who have many millions of followers telling people to rent your own home and never buy your own home, and I want to dispel that myth. Certainly if you're in the UK, this is very relevant, and people do not understand just how dangerous and expensive it is to rent your own home, certainly for the long term. Now, if you feel you're stuck renting and you've got no choice, stay with me because I think what I'm going to share with you will really help you. Also, there is one major exception to this rule of not renting your own home, and I'll also share that just to show you that I'm balanced. But it honestly, it does piss me off and frustrate me that there's a lot of big American influencers out there telling everyone to never buy and always rent. Um, I reckon that could cost you about £1.6 million over 15 years, by the way. Um, and they're not giving context. So my context is especially, uh, in the UK. Um, and of course things change. So right now, for example, rents are really high, so you're screwed. You're renting and rents are going up and up and up. Now again, if some of you say, oh yeah, well Rob, I don't have a choice, I've got bad credit, I can't afford to buy— stay with me because the past doesn't have to dictate the future. And just because you couldn't afford to buy in the past or now doesn't mean you can't change it. So right now rents are really high. That's reason number 1 why I believe you should not rent your own house despite what the big American gurus say. Number 2, let me ask you, what do you think is your biggest monthly expense? Put it in the comments. What's your biggest monthly expense? Is it your car? Is it your food? I would argue it's your rent. Like in Peterborough, for a very modest house, it's £1,000 a month. Which must mean in London for a very modest house is £2,000 or £3,000 a month. It is your single biggest expense and it is all dead money. Now there are some things that you must spend money on to survive. You wouldn't say buying food is dead money. That would be ridiculous. And some people say to me, well, Rob, you know, shelter, it's not dead money, but it is dead money if you have other choices. And I'm not saying go and pitch a tent and live for free, but you don't have another choice over food. You do have another choice over rent, which is to buy your own home. So rent is the single biggest expense and the most dead money. Now, um, a few other reasons. By the way, I want to do the maths on this just so you don't think that, you know, this is just another opinion. I'm going to do the maths on this, so stay with me because I think the maths will shock you. Right, reason number 3 you shouldn't rent is because the landlord can kick you out at any time. The landlord can whack your rents up. The landlord can be an asshole. By the way, tenants can be assholes, but you know, I'm just talking about renting here. Do you know that moving is a huge expense? If you rent every year— oh, do you know what, Rob? All the Americans tell me I can live free. So just rent. And every time you rent and move and rent and move and rent and move and rent and move, it costs you a huge amount of money. Huge amount of money. Um, renting is not anywhere near as good for your credit score as buying is. And if you want to be able to invest in assets that produce income, you need a good, good credit score. Um, there's no tax breaks for renting. It's all after tax, which means it costs double. So if you've paid your tax and then you rent, your rent that was £1,000 is about basically £2,000 after tax. Earn £2,000, pay your tax, left with £1,000, pay your rent. So there's no tax breaks, etc. So it's a trap. Now some people say to me, yeah, but Rob, getting a mortgage for 25 years is a trap. And in some ways it is, but what you can do is get a mortgage and play the central banks at their own game, which is what I'm about to show you. And remember, when, when all of you who are watching here say, oh, but I can't afford it and I haven't got good credit, your past does not have to dictate your future. And by the way, you can ask questions in the chat. All right, so, um, here are some solutions and here are some reasons why buying is better than renting. Oh, I did say I would share with you the maths on this, so stay with me. Um, I will share the maths on this because the maths is eye-watering, i.e., how much more money it costs you to rent. If you knew how much more money it would cost you to rent, I don't— I think you would try and buy as quickly as possible. All right, so number 1, if you're relatively young, i.e., maybe under 25, stay at home and only move out when you can buy your first place. Now you can buy a small place, um, or maybe you could get some help, uh, with financing it. Number 2, get some help financing your first house. Maybe you've got family money, maybe there's inheritance money that might come through, um, you know, maybe you can borrow some money. So that's the second thing you can do, get creative about raising deposit. Maybe you can get a cheaper house and go on less holidays and reduce your expenses and put all of that money into the deposit for a house, because believe you me, it is significantly cheaper, eye-wateringly so. Okay, um, why are most smaller properties for sale at auction only? I don't think that's true at all. Most properties aren't for sale through auction. Most properties are for sale through a real estate or an estate agent. Okay, next thing you can do is you can buy somewhere and, and rent out a room or two, or Airbnb a room or two to pay for your mortgage. So I had someone at one of my property seminars yesterday, that's what he's done. He's bought a place He's renting out a couple of rooms, so basically his mortgage is free. I've got someone who lives across the road, right? She lives in a nice house and she Airbnbs some of— two of her spare rooms to my students that come to my property events. So she's getting free living. By the way, if I went live, said, oh, how to get a house for free, how to live for free— there you go, how to live for free. Okay, so that's the next thing you can do. You can buy somewhere really small and then work up and work up and work up and work up That's a good way to do it. Alright, so here are more reasons why buying is way, way better than renting. Number 1, when you rent, it's all dead money. When you buy, some of it is dead money. Now, the part that's dead is repaying the interest on the loan for the house. The part that is an investment or is not dead, i.e., you're keeping it, you still own it, is the repayment part of the mortgage. Now let's do the maths. I said I'd do the maths. Oh, there's another big reason why buying is much better. I'll talk to that in a minute. So let's say your rent is £1,000 a month. That's £12,000 a year. Now you've got to add inflation into that. Let's just do it yearly. So it's £12,000 in year 1. So even just at 5%, you know, you're nearly £13,000 a year too. It's a bit more inflation now, it's more like £10,000. And if they tell you it's £7,000, it's probably £12,000. So £12,000 a year, year 1, £13,000 a year, year 2, £15,000 a year, year 3, you know, £17,500 a year, get the picture. Now I've worked this out that you could be paying £150,000 over 10 years Therefore, probably about £350,000 over 20 years, maybe. You could be paying £500,000 or £600,000 in rent over a 25-year period. £500,000 to £600,000 for a small, humble property. Okay, now look, the maths can be really complicated, so I want to keep it simple here. This is just for illustration purposes. Let's say your mortgage is the same and you get a similar or same quality of house. And people— some people might say, yeah, but Rob, you need the deposit. Yeah, but that's locked in and that's safe, that's yours. Okay, so you can pay £500,000 to £600,000 over 12 years, over 25 years in rent, or you can pay £500,000 to £600,000 over 25 years in mortgage. And let's say, for the sake of simple numbers, a grand a month mortgage gets you a £300,000 house. Now In 10 years, the 300 grand house is worth 600 grand. In 20 years, so 300, 600— actually, no, I'm going to say it doubles and doubles again. So 300 to 600, 600 to 1,200. Let's just go really— let's go a bit lower so you can't say that I'm pumping up the figures. Let's say it goes to a million. So, but by the way, I was buying houses for 70 grand 14 years ago that are now— that peaked at £250,000 and are now £220,000. So, um, let's say that the £300,000 house goes to £1 million, which is probably fairly realistic. So if you pay rent over 25 years, £500,000 to £600,000, dead, dead money. If you pay, um, a grand mortgage over 25 years, some of it's dead, but you own a house that's worth £1 million quid. So you can be minus 600 grand or plus a million. Tell me now that renting is better than buying. Now again, people are still saying in the comments you can't save a deposit in the current climate. That's not true. Let me just challenge you. If you think you can or you think you can't, you're right. Now if you're not earning enough money, you need to earn more. You need to do extra sales. If you're employed, maybe you need to start a company. Or maybe you need to reduce your expenses down and save quicker. Maybe you need to sell a load of stuff that you've got in your house and raise some money. Maybe you need to go to friends and family and borrow money. So, um, yeah, you just need to open up your mind. Now there's another big reason here, um, that you definitely want to buy your own home, and this is called inflation. So when you rent That cost is going up. Inflation pushes it up. Your grand a month rent goes up to £1,100, 10% inflation. £1,220, 10% inflation. £1,360, 10% inflation. So basically your rent costs more every year. But do you know that the value of your mortgage costs less every year. Because if the value of your mortgage is £300 grand, 10% inflation— if inflation is eroding the value of money, it's eroding the value of debt. So £300 grand mortgage, 10% of that is £30 grand, and the government is essentially paying £30 grand off your mortgages. 10% off £270 is, you know, £27 grand. So I have tens of millions of pounds worth of mortgages. And in the 3 years after the lockdown, I worked out that the government had paid off 1/3 of all my mortgages. They'd paid off more than £10 million of my mortgages. £10 million the government had paid off because they print money and they create inflation. And when they reduce the value of money, I increase the cost of things, they reduce the value of debt too. So when you rent, the government are making your rent go up. But when you own, the government are making your mortgage costs go down. Now I'm going to answer a couple of questions because there's some things in here that some of you are not accurate on. Now I would advise you— no, I don't do advice, I do experience. I would suggest that you might want to ask me questions rather than make statements. What's the point in watching me and then trying to convince me of your own argument? Um, and said with humility, I own 340 properties with I think 1,350 tenants. I've done more than £200 million in sales just in my property training business. You know, my property portfolio makes many millions in, in income. So some— Richard has said house prices going down but interest rates make up for it. I agree, Richard. In the long term, prices go up in the UK, and that's why it's much better to buy than to rent. By the way, if house prices went down in the long term, it would might be better to rent than buy, who knows, because you don't want to be losing money. Um, but yeah, house prices probably are coming down, uh, and the interest rates going up is causing them to go down. And so, and people say, oh yeah, but Rob, at the moment there's no point buying a property because interest rates are high. But interest rates going up will cause the prices to come down, which means you can buy a cheaper property. And actually, the yields and the cash flows are going up. Mark has said 90% of small properties, like flats and studios, are auction only. This isn't true, Mark. When people say 90% of it, it's immediately obvious to me that it's not proper research. Most— I mean, of course it depends where you live, um, but no, that most properties go for sale through the estate agents. Now, by the way, if more go through the auctions, this is good. If more are getting repossessed, it's obviously not good for the homeowner, but it's good for you if you want to buy your house because you'll be able to get it cheaper. And, um, you know, when people say, oh yeah, but Rob, um, I, I can't afford to buy— well, house prices getting cheaper means that maybe now is the time. Now a lot of people say to me, yeah, but Rob, I got bad credit, so sort it out. A lot of people say to me, Rob, I can't find a deposit. Yes, you can. You just need to stop wasting money, stop spending money, stop going on holidays short term. Because by the way, when you've got passive income from assets, you can go on as many holidays as you want for free. Paid for by assets. So also what you can do when you pay your mortgage down and you own your house is then you can remortgage that house and go and buy a load of assets. So at the moment, your rent is all dead money that you're having to pay double for because of tax. Whereas imagine if you owned a home, the mortgage is paid down over time, you remortgaged it, you bought 3 or 4 buy-to-lets. Let's say each buy-to-let ended up with about £200 cash flow. Let's say you've got 5 of them over time, you're making £1,000 a month, and then that £1,000 a month comes back and pays off your mortgage completely for free. So you own your house for free. Anyway, let me know what you think in the comments. I, I strongly believe that this is true. And by the way, this is not theory. There's so many people out there giving advice in theory, you know. There's TikTok influencers who are 21, there's American gurus who are teaching you stuff that doesn't work in the UK. And probably the same in America, I'd say. And of course you've got tax breaks for owning your own home. If you own your own home, when you sell it and buy a bigger one, there's no tax on it. When you spend money decorating your own home, it adds or maintains the value. When you redecorate a rental, it's just dead money, just makes the landlord money. So look, if you've got any questions, put them in the chat. If you think that I've shared some useful content here, I want content, I wonder if you wouldn't mind sharing this. I'm trying to get out there to as many people as possible, better financial education and knowledge, challenge what people have learned in the system, help people go from broke to wealthy. My personal mission is to help as many people on this planet gain that better financial education. And actually, one of the best ways I can do that for you to continue this education is through my exclusive digital financial freedom platform, rob.team. Now, Rob.team, it, um, if you want to make, manage, and multiply more money, invest in assets that produce recurring income, if you want to learn, earn, and invest, if you want to get your tax bill down and your income up, if you want to reduce your expenses and increase your income streams, if you want multiple streams of income, Rob.team is for you. Now, the great thing is it's all online. There's hundreds of hours of courses, resources, and masterclasses. And before lockdown, it was more money And then when lockdown happened, I reduced the price to hopefully do my bit for the world, and I haven't put it up since. So you can still jump in right now, um, at the very lowest price. Do you know it's only 22 pence a day? You can cancel any time, no ongoing contract, really easy to join. I recommend you do it right now. So here's what you do: you open up a new web page, do it now and then come back, and type in rob.team rob.team. Don't even have to put the www. Rob.team. So go join right now. Cost you 22 pence a day. You can cancel anytime. It's really easy to join. There's hundreds of hours of courses, resources, masterclasses like this. Can see people going because I can see the numbers. So go join them. And by the way, if you're still here, um, I recorded live a paid-for 10-week 12-hour money mastermind university teaching people what they should be taught about money in schools, but they're not. What their parents didn't know about money because they're broke. And helping you get out of debt and get rich, but get rich a good way, an ethical way, a moral way. Um, and that was a wildly successful, um, mastermind. And you know what I'm going to do for you if you go and join rob.team right now? I'm going to give you access to that completely for free. In fact, I've already put it up and it's live on rob.team. I might pull it down because it's 12 hours. I could sell that as a course for probably a few hundred quid at least. So if you go and join rob.team, R-O-B dot T-E-A-M, rob.team, then you can go and not only be a member of rob.team, go and join nearly 10,000 movers, shakers, game changers, change makers, entrepreneurs, investors, people who don't want to pay all this tax. But in addition to that, you're going to get this 12-hour online course on My Money Mastermind University completely for free. But go quick, I might take it away because I might end up, um, charging it as a separate course. Um, Kurt says, um, sound advice. I would add the tax is a great leveler, which is never really mentioned. I mean, you can't really offset You do have tax breaks owning your own home. Um, you still have to pay for the mortgage of your own home after tax, not before tax, unfortunately. But there are tax breaks owning your own home, and people don't factor in the tax. Um, so when you factor in the tax, it could be 1.92 million difference over those 25 years. Is it ever worth selling a property? Look, if it's your own home, Ryan, and you want to sell a property to trade up to get a better property and you want the tax relief, it's worth it. If it's for an investment, you should keep it because properties double every 12 to 15 years. Of course, if you buy an app— bought an absolute lemon— buyed, my sister— my daughter said buyed. If you've bought an absolute lemon, you might want to sell it, but then you might want to not realize the loss. I own 340 units. I've only sold a handful, and I regret selling those because they've, um, you know, absolutely, um, increased in value significantly now. All right, so thanks for tuning in. If you found this content useful, please share it because there's not enough content like this out there, in my opinion. There's a lot of bad advice. IFAs give advice probably because they want to get the commission on the thing that they're recommending. And then, you know, I always find it ironic, right? I own my own house. I own 340 units. And all these— there's these multi-millionaires saying never, never own, only rent, and they rent their own house and they're multi-millionaires. This seems really fishy to me. Oh, come on. So thanks for tuning in. Hit the share button. I'll see you in Rob.team. Just type in Rob.team for the discounts, for the 22 pence a day, cancel anytime, no ongoing contract, hundreds of hours of courses, resources, master classes and the 12-hour Money Mastermind University completely for free if you go now. But remember, I might take it out and sell it as a course. We'll see how that goes, so be quick. Thanks for tuning in, and remember, if you don't risk anything, you risk everything.