buy vs. rent

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summarizes the video

The Rent vs Buy decision is far more than a simple financial one. Most rent vs buy calculators help you make a quantitative decision; ie: they work out whether it will cost you less to rent or to buy.

However, such calculators are only a minor part of the decision, because:

there are often many hidden costs – such as repairs and maintenance, the cost of moving, etc. – that are not included in many “rent vs buy” equations.
the rent vs buy decision is often not a quantitative one, but a qualitative one.According to the 2008 Fannie May National Housing Survey (in the US) roughly 2 out of every 5 people who rent do so as a matter of choice. Such choices can be influenced by factors as diverse as:
- Whether you need a better credit rating for future borrowing
- How much stress you are prepared to deal with if and when you move
- Whether your sense of independence or freedom is important to you
- Whether you’d rather spend or save
- Your pension strategy
- And other factors

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