Renting Vs Buying
Popular wisdom seems to suggest that renting is ‘dead money’ and young people should purchase a home as soon as they can afford it to build their wealth. A recent research report by Ernst and Young suggests that in many circumstances it would work out better to delay buying a home and rent instead. The authors make a comparison between saving money while renting and investing that in the stock market verses purchasing a home. At the end of 10 years, the outcome of each investment is compared with the results showing that 60% of current apartment owners in Sydney may have been better off renting and investing the money in a 50% leveraged ASX 200 ETF.