My wife and I were having this discussion about the differences between purchasing a house outright (i.e. cash buy) versus renting a house.
One view was that renting is pure dead money and therefore it's a no-brianer to purchase rather than rent.
However, the other view is that renting and investing available funds wisely is a valid alternative option and does not necessarily mean financial loss!
From a strictly financial POV what would the financial differences be between buying a house outright (i.e. cash with no borrowing) versus renting a house/home and investing the capital?
For the purpose of this question, the investment risk should be close to that of a the risk of investing in property (if this is possible to deduce)
Here is the example scenario:
Sean
One view was that renting is pure dead money and therefore it's a no-brianer to purchase rather than rent.
However, the other view is that renting and investing available funds wisely is a valid alternative option and does not necessarily mean financial loss!
From a strictly financial POV what would the financial differences be between buying a house outright (i.e. cash with no borrowing) versus renting a house/home and investing the capital?
For the purpose of this question, the investment risk should be close to that of a the risk of investing in property (if this is possible to deduce)
Here is the example scenario:
- Purchasing a house outright for €300,000
- Renting a similar house for €1,000 p/m and investing the €300,000
Sean