Why I’m Renting Instead of Buying a House | Renting VS Buying Discussion


My first video in the new apartment! Thought it would be a great time to discuss why I’ve made the decision to rent instead of getting a mortgage on a house. Let me know what you think!

DISCLAIMER: This is NOT financial advice. I am just offering my opinions. I am not responsible for any investment decisions that you choose to make.

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20 Responses to Why I’m Renting Instead of Buying a House | Renting VS Buying Discussion

  1. TheHotcrumbs

    I WANNA BUY A PLACE OUTRIGHT CASH , BEEN RENTING FOR 11 YEARS AND IVE MOVED 10 TIMES RENTINGS OK BUT I LIKE THE THOUGHT OF HARDLY HAVING ANY OUTGOINGS PLUS LANDLORDS CAN SELL ON YOU AND YOU TO FIND A NEW PLACE , HOPING THECRYPTO WILL CHANGE ALL THAT !!!!!

  2. dUCiLe

    24.. single … makes video's and goes to the pub every afternoon for a line of coke and to shoot the shit with the BOYZ #fullsend

  3. Colin H.

    Why not just get fixed-rate interest instead of variable? That completely handles your concern about rising interest rates. Then you can actually keep some of your rent money in the form of equity into a new home.

  4. Adam Kershaw

    Buy a place, get consent to let on a mortgage, and then you can rent it if you want to move.

  5. Tomas Av.

    BUYING IS GOOD FOR 1 REASON-WHEN YOU GET OLD AND HAVE NO MONEY-AT LEAST YOU DONT HAVE TO ALSO PAY RENT.

  6. Tomas Av.

    SUN IN UK? WTF, WE DONT BELIEVE 😀

  7. A A

    Fuck a mortgage, rent invest your money wisely and when your ready just buy the house straight cash! No interest at all

  8. Viral Killer

    I've done the math on this many many times…Renting works out better if you invest in stocks

  9. Syed Ali

    The interest on mortgages are fixed and wont change if you secure a fix rate mortgage loan

  10. Power To The People

    what he doesn't mention is he was living with his parents before this

  11. Quantum World TV

    Smart move binding contracts are energy robbing..

  12. poleag

    An underexamined aspect of this is that there is so much leverage available when buying a house that it often instantly becomes the homebuyer's largest investment and dominates his net worth. Take a single person with $50,000 worth of cash, precious metals, diversified global stocks and no debt. He sells $40,000-worth to put 20% down on a $200,000 house and spends another $5,000 on closing costs including taxes and fees to lawyers and real estate agents and so on. Now he's got a net worth of $45,000. Nearly the same as before, but now 87.5% of it is in a single thing in a single location. If the local real estate market has a 30% downturn, and his $200,000 house can now only sell for $140,000, that wipes out his entire net worth. He still has his diversified investments but they've gone down 50% to $2,500 and he's down $60,000 on the house giving him a net worth of -$57,500. And he still has to make the same payments on the mortgage every month. Ouch.

    Meanwhile, the guy who kept his $50,000 worth of investments and was renting a similar house can very quickly downsize to a cheaper house paying half the rent. Or move in with relatives or roommates and pay a third of what he was paying or less. Or move out of that location to find another job in another country. His massive flexibility allows him to move with the economic punches or dodge them completely. Transitioning to a minimalist lifestyle allows him to reduce his spending to a trickle at the drop of a hat. Even with a 50% hit to his holdings, his net worth remains positive at $25,000 because he's not hyperleveraged. He can continues his minimalist lifestyle to wait out the downturn. Or he can sell to cash to quickly salvage what he can if he expects continued bearishness. His assets are liquid. This guy has a fuckton of options.

    The way I see it, the renter is living life on advanced mode. He has supreme flexibility and he can respond to the changing conditions very quickly. He can also easily fuck himself by panic selling or dipping into his investments more often than he should or would if his money were locked up in home equity. The homebuyer, in contrast, is living life on normal mode. He has decided that his regional economy and country have great long-term prospects and is confident that he's going to benefit in the long-term from the heavy leverage he gains by mortgaging the house. He also may prefer the fact that his home equity is not as accessible as stocks: this encourages him to HODL. The lack of liquidity gives him an artificial strong hand in a market that historically delivers in the long term.

    In the end, I don't think either strategy is inherently better. It depends on a person's personality and his ability. The renter could potentially come out way ahead by using his supreme flexibility in a good way. He could also come out way behind because of that same flexibility. But the truth is that the majority of people simply do not have the mental resources to benefit from supreme flexibility. In fact, most people are going to be hurt by having supreme flexibility because they are going to do precisely the wrong thing at precisely the wrong time. We are herd animals. FOMO and PANIC run strong. They predictably demolish most of the people most of the time whenever they try to make moves.

    Therefore, I think 95% of people are going to be better off buying and holding their homes, paying off their mortgages, and not touching the equity. Over time, home equity will become the largest component of their net worths. By the time they are 55-65, they'll likely be in better shape than most. After all, it's hard to be in worse shape than the dependent class and the paycheck-to-paycheck working poor.

    And the remaining 5%? The upstarts who think they can successfully manage risk, make moves, and live life on advanced mode? The ones staying hungry and foolish? You can have it all if you make the right moves. #YOLO.

  13. victor toombs

    Congratulations on you new apartment Louis!! It looks really nice. can I ask how much it costs to rent? Don't listen to all these people on here saying that renting is bad. That's  total BS! For someone your age it makes perfect sense to be a renter as your life may change very quickly at that age. When you are in your thirties and married with a kid on the way, then you can go and buy a house. I live in Los Angeles where I am a renter even though I am in my fifties. Despite being a renter, I own 21 properties in several different states and each one of them gives me positive cash flow. Right now I wouldn't buy anything anywhere in the world due to our economic cycle. Right now the economy is still chugging along, but as you pointed out we are drowning in debt. There has been a lot of money printing and negative interest rates have been propping up this market, but eventually this house of cards is going to collapse and come crashing down. I see things being much worse than in 2008 and that will certainly affect home prices as well. I bet that if you wait a few years you may be able to snag a home for 40-50% less than what it costs today. Until then enjoy your new apartment. Could you perhaps show us a video of the whole place? Cheers!!

  14. Deivi134

    yes please keep renting so you can pay other peoples mortgage lol lol lol lol lol

  15. Kelsey Brennan

    Wait for the bubble to pop! I'm 23 and I dont think buy for like 20 yrs hah

  16. Kelsey Brennan

    Home ownership seems like such a big hassle. Also not a good time to buy cause the economy might collapse soon :// I'm living in my friends volkswagon bus for free all summer to save a bit 🙂

  17. Shaun Varnham

    Are you nuts? If you can afford to buy you absolutely should. Renting = money in someone else's pocket (nothing to show for your money). Buying = something to show for your money. Not just something either, but property – which is nearly always going up in value… not to mention that it generally works out a bit cheaper paying a mortgage monthly than it does paying your monthly rent.

  18. Malcolm W

    If you require a mortgage you will need a regular job to prove you earn enough and will also look into your past earnings, the loan company, bank or building society will consider whether to grant you a mortgage or not.
    Cryptocurrencies may not be recognised as an additional asset & best to avoid mentioning anything to do with it as you will be looked upon as a speculative gambler which most likely will put them off from giving you a loan. It kinda does go against the norm in view of everyday banks & building society's business.
    Also you will have to be able to keep up the payments throughout the loan repayment period, meaning a good paying regular job in their eyes.
    House prices are grossly overvalued, so best to rent and see if you can increase your capitol over another year at least, then if you are successful aim for a cash-pot down payment for a house of some 50% so any mortgage is smaller.
    When I was 24 there was no problem with decent paying jobs, so I started buying my first flat for £12k in a good area, was real easy times then, that same flat is probably 150k now a ridiculous price but today's youngsters have to do something that is different and no less successful, so you're doing fine.
    Hope your future works out well

  19. Blasay

    Congrats on your move! Been watching since sub 10k

  20. Schild Benjamin

    just wait one more year and you will have left the EU without moving 😀

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