Please note that while this content is broadly applicable, it was originally intended for a Canadian audience.

You can’t compare rent to a mortgage payment. This way of thinking about the rent versus buy decision is extremely flawed. Comparing a mortgage payment to rent is not an apples to apples comparison. In order to properly assess the rent versus buy decision, we need to compare the total *unrecoverable costs* of renting to the total unrecoverable costs of owning.

That may sound like a complicated task, but I have boiled it down to a simple calculation.

Referenced in this video:
The Case for Renting a Home – Part 1 –
The Case for Renting a Home – Part 2 –
The Case for Renting –
The Credit Suisse Global Investment Returns Yearbook 2018 –

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