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Drawing Conclusions: Is renting really a waste of money?

29821 ratings | 2822449 views
If you've ever wondered why some people think renting is better than owning, here's the explanation behind how that can be true.
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JesusFriedChrist (4 hours ago)
Owners are just renting from the bank. Take your pick. Rent from the bank and get tied down somewhere, or rent from someone else and let them worry about it.
David Fiore (4 hours ago)
Why is Roger the Renter wearing designer jeans, has a tan and look sophisticated while Owen the Owner looks like Seth Rogan with bad posture?
Tuck Porter (1 day ago)
@The Globe and Mail Well, I just arrived here and watched your video! Got "befuddled" glancing over hundreds of negative comments below. Guess this is why "Roger& Owen" had to leave their Country (I see they both never married either!). Sounds like their Math Formula to Rent or Buy would fail them both in Real Life (according to eyewitnesses below). I already know these Bachelors aren't coming here to wild high L.A. to try this real estate game. But maybe if they went to Oklahoma....?
William Hendick (1 day ago)
WHAT A LOAD OF BOLLOX!!!! In a world where the monthly Rent Commitment is 2x the Mortgage of the same property?.... You are full of shit. Simple Fact: YOUR NOT IN CONTROL OF WHAT YOU PAID AND IT KEEPS GOING UP EVERY FEW YEARS WHEN RENTING!!!! ----- Your a fucking dickhead!!!
Marek Piirikivi (2 days ago)
The first mistake I already see in here is the fact that he assumes that the home owner lends a money to buy a house. What if you buy with the money you already have, which means that you don't have to pay mortage?
dThor Riven (3 days ago)
You’re might be homeless if can’t buy your own house 😄👉😾
gus black (3 days ago)
Save your money on a home inspector Appraisal fees? I dont even know why anyone would pay a real estate salesmen in todays environment
gus black (3 days ago)
show me where to go to get 7 % ( after fees and taxes)
chines1091 (4 days ago)
Do it again but with student loan debt.
Celestial Punkrock (4 days ago)
If you rent them you don’t have to worry about most repair fees
Ken Maylin (5 days ago)
The part about home ownership that I've never got was the fact that you buy a house for a hundred and fifty thousand, pay on a mortgage for 30 years, and at the end of that 30 years you've spent 350,000 on this house and now it's worth maybe 250,000....but probably not
Kaleban (5 days ago)
I'm a realtor in Florida, and I can say unequivocally that it is almost always better to buy than rent, as long as you: A: Buy within your price range (i.e. 20% downpayments, not 5% FHA) B: Know how to budget And that's it. The U.S. does have recessions just like any other country, but as long as you're not buying in ridiculous markets with greater than 75% pricing increases per year like Las Vegas or parts of Florida, your home's net value will either keep pace with inflation or see a net increase. This video also represents a gross inaccuracy with regards to the rent calculation. WITHOUT fail rental pricing usually costs close to what you'd pay for a monthly home mortgage. This is due to the mortgage holder typically wanting to collect enough monthly income to cover the mortgage, taxes and fees, along with some naked profit. In my experience, renters are renters because they typically cannot afford the 20% downpayment and so renting is a much easier pill to swallow in the short term, even though long term results in no assets. Additionally, one of the best ways to build wealth in your mid to late life is to buy a home ASAP, save as much as you can and buy a second home while renting the first. The renters pay off your first home for you, while you pay for your second home. If you make enough money or are VERY investment savvy (such as buying fixer uppers and doing the labor yourself) you can amass a small portfolio of units that vastly outperform the stockmarket in returns while having total control over how said assets are distributed.
Amulav Toniyans (17 hours ago)
Rent to Own homes are best option for people with bad credit, I personally buy them on rentownhouses.club and they even offer trial now
wilwad (5 days ago)
Not a fan of having to watch someone's hand draw & write
Juan Carlos Alvarez (5 days ago)
So, unrealistic situation.
David Vivian (6 days ago)
Holy shit I"m moving to Toronto for the property taxes!
Tim Harvey (6 days ago)
There are two assumptions that are way off base. First, that you can rent a property for 2/3 the cost of buying it. You will end up in an apartment complex to pull that cost savings off. That is extremely rare. Second, this assumes that Roger’s rent doesn’t increase for 25 years. Owen’s mortgage payment won’t change unless he moves, but Roger’s rent will increase. Both of those drastically skew the analysis in favor of owning.
Tony A. (6 days ago)
It is better not to buy a house since it is and will be. A liability for x years 25 or 30 years. This is a liability or bad debt since it does not produces any real ROÍ. It is better to have a debt that produces 6, 8 or even 10 % in return. In 25 or 30 You will be making 10X more money than what it is explained in this video. They don’t tell you that. Visit grantcardone.com and you will see the truth. I don’t get paid for any advertising. Good luck!
Charles Caldwell (7 days ago)
Holy shit, who gets a 500,000 dollar house with only 25k? I dont even think most banks would even give you that much.
JaxPlanet (7 days ago)
Wow. This is really stupid.
Jack Capone (7 days ago)
...all good but! consider that MOST millionaires (82-90%) own their primary residence. The financial # aside, it is indicative of a type of behavior that is likely tied to why they are otherwise wealthy - discipline, investing, saving...as you note in this clip, the renter must be disciplined and it is easy to argue that many renters are not and hence they are renters.
JohnDoylepoems (7 days ago)
dont know if canada is different but in he UK rent is more expensive than repayment mortgages. Also in the UK if we just translate to pound, 35000 most of that would be deposit and depending on your job unlikely you could get mortgage for 500000 pound house, seems a bit math salad....
Sorzin (9 days ago)
Micro homes seem alot more interesting now.
Vinayak Pai (10 days ago)
Beautifully explained.
hans grubber (10 days ago)
sidenote dont believe anything that comes out of toronto kids lol
hans grubber (10 days ago)
more financiall bullshit to confuse the masses... just my two cents
Bomber M (10 days ago)
Can you take any of each scenario with you when you’re dead? Perhaps just be a better person.
Shireen Hendricks (11 days ago)
Thank you
seth johnston (11 days ago)
Yes, but what if the owner lists his house for rent and buys a second home. There's more ways than relying on the market value of real estate to increase.
Dave Hooper (11 days ago)
Why is Roger's landlord charging him less than his mortgage amount, and why is he allowing a tenant to lock in his rent at the same amount for 25 years? (The projections in this video are completely wrong.)
Neo (11 days ago)
Well I found free $1654a money making system that is really working:(just go to) greatworks.club/?Krnkx Great work...
Jeff Anarakoty (12 days ago)
Check the hot property here http://bit.ly/2SBrqww
Cathy Perry (12 days ago)
We currently have renters who can no longer stay in their homes. When the price of homes in our area went up, due to a shortage of housing, the rents went up also. The renters can't afford the new rates and were not ready to buy due to poor credit or lack of funds saved to put into a purchase. I own a home and really like the idea of not having someone tell me that I can't live here any more. As long as I pay my part, the house is ours to live in. If a renter wants to continue to pay their part, they still may have to move out of the area if the owner increases the rent significantly.
Oule Raoul (12 days ago)
Thank you for the explanation. I was wondering about this but am unable to do the math. I do not know all the variables. Do you have the same explanation between owning and leasing a car?
Kpuff 8 (12 days ago)
Where I live ownership is more than half the cost on paper than renting. I would have more liquid cash in my pocket after paying my bills than if I rented. Money I can use towards my investments instead of throwing it away to a landlord
Laurent Baril (13 days ago)
I think this video is kind of disappointing and dishonest. Since its the first house the buyer wouldnt have ltt. Also rent is usually AT LEAST 5% of the house, and usually around 7%. For a house of a value of 500.000$, the renter would pay around 3000$. If you can pay your 20% cashdown, buying is for sure cheaper then renting. I’m paying 1226$ for a mortgage and people in my area pay roughly 2100$ for the same house in rent. Also I dont understand why if Roger cashes out all his investments at once he’d only pay 77k in taxes ? Could you enlighten that I’m not very familiar with taxes when pulling out of investment. I would have expected that money to just be added to your yearly income, which would lead to a lot more then 77k in taxes Also the inflation, qouldnt that only increase the home buyers money and not the investor ?
Darren Muihead (13 days ago)
What moron of a landlord would own a property that costs him 3000+ and only rent it out for 2100??
prcacowboy82401 (13 days ago)
Hey, Einstein, I've owned my home since 1997 - 21 years. I have had zero dollars going out in house payments. Yes, I pay annual taxes, HOWEVER, renters ALSO p ay those property taxes for the landlord. Owning one's home as opposed to buying someone else's property makes a whole lot more sense. Oh, my home is 2500 square feet with a 24x32 shop sitting on 3.5 acres. Annual taxes run ^698 per year. Why on God's green earth would anyone want to pay perpetual rent when owning their home gives them financial freedom? Did I mention I've been debt free for DECADES now? Go ahead and rent for the rest of your life. As for me, I only have to give to Cesar every year; something that as I said earlier even renters do because taxes are factored into the rent.
Pantaleon Pacis (13 days ago)
You own a house for your FAMILY, it's not a financial investment, you lose more money owning and its not liquid enough. Better rent first and build your cashflow then buy a house when you have the money. It's for YOUR FAMILY, not a financial investment and definitely not an asset if you don't rent it out or use for business
jay Brown (13 days ago)
when ppl say move to canada for the free healthcare lmaoo sheesh all those extra taxes
Ty Malone (13 days ago)
A mortgage?  Don't know the meaning of the word.
ed schneidmuller (13 days ago)
I've always purchased homes that I could easily afford and always considered the "what if's" Real Estate brokers have tried to show me homes that would max out my ability to borrow. I've bought a couple of handy man fixers and a couple of foreclosures. Some people should never buy a house because they don't know how to maintain the property or can't afford to because they maxed themselves out.The reason I say this is I've fixed up the places I've bought and gave them "curb appeal" which helped sell them for a higher price and every single one I've sold I go back to look 6 months down the road and the properties end up looking like crap because the new owner was clueless as to what is involved to keep your investment looking good. That being said,if you do it correctly buying is a better option. I've had only one home that I didn't make a nice capital gain and that one was I needed to move at the wrong time.(mortgage crisis) I was able to pay cash 8yrs ago for the home I live in now because of capital gains.(just turned 58)
Levon Gyulinyan (14 days ago)
I am really surprised how wrong economically explained... this is the worst comparable that I have ever seen. With Having years of experience in Risk Management and Real Estate Market I would suggest just do not follow this cartoon.
Steven Brown (14 days ago)
Obviously this doesn't work in CA. My rent has gone up $550 a month in two years. If you don't buy now you're doomed
Shoeless Jack (14 days ago)
Look at the amortization breakdown and explain to me how it's not a scam. Buy a piece of land and build your own. Get away from the concrete jungle.
Cecilia Augustin (14 days ago)
Lmbo... You forgot to caculate the high interest rate Owen the owner had to pay after the 5 yrs fix rate...
Jemo (14 days ago)
What if Owen the renter uses the balance of $1,100 to buy a house on Mortgage and Rents it out?
Rico Caceres (14 days ago)
This is a really bad example. both of this 2 people are on crack if they think about buying/renting a 500k property
Darryl Stein (14 days ago)
ummm.. you missed THE INTEREST COSTS ON THE LOAN. How much interset on 489k dollars did he pay. You conveniently left that out. Everyone leaves the interest amount out of these equations.
Darryl Stein (14 days ago)
total cost of mortgage interest is usually double therefore you need to factor that huge waste of money. And the average mortgage is 30 yrs. 3100x12x30 = more than the selling price.
Wili Wds (14 days ago)
Manage your own investments using a simple strategy of EMA 13 EMA 47 selling and buying when they cross and don't trust brokers or investment firm as they have to many other customers to satisfy or not ;)
Hazunaki666 (15 days ago)
Option #3 join the military, dont spend on things you dont need and save 90% of your paycheck, no need for housing or food in most cases cause it is provided/offered.
Richard Sanchez (15 days ago)
That's assuming people that rent invest. Not all do.
helloworld2705 (15 days ago)
He can still rent the house😏
Frank (15 days ago)
What is roger gets a crack habit ?and Owens wife leaves him for the big black bull next door ? Can't you show that math please ?
xrcrx ftfghjg (15 days ago)
it all depends on if you have it in you to take care of a house.
WildDisease (15 days ago)
Year 2009 was the lowest of the Stock Market Crash. Theoretical share of NASDAQ hit $29 (vs. $20 post-2001 dotcom crash). Year 2018 was the highest of the Stock Market history. Theoretical Share of NASDAQ hit $180 or an average of 20%/year over the same date range so your $285k would have been worth $1.725m if you ran the same investment like Roger would have actually done.
WildDisease (15 days ago)
S&P does 15% typically and 10-12% on average. NASDAQ does 25% typically and 15% on average.
Tim Cisneros (15 days ago)
I was advised by my Economics teacher in College that it was better to rent in the San Francisco Bay area because housing was over-priced. Fast forward 30 years.. We still rent. Rent has gone up 300% (and rising) We are at retirement age, never bought a house, rent is rising (did I say that already?) and we have nothing. Well, we did do something. We bought a piece of raw land (outside of Ca.) and I am building my own home debt-free. Bought the land with savings (cash)But I do have an advantage. I have been a Craftsman all my life so I have skills that some may not have. I would advise everyone to buy a piece of land ...somewhere, anywhere because when things get tough you have a place of safety and sanctuary. It is an investment in YOURSELF, NOT an investment to make money on! SELF RELIANCE PEOPLE! Get it or you are screwed!
Tim Cisneros (15 days ago)
To answer the question "Is renting a waste of money" I can tell you in unequivical language YOU BET IT IS!!!!! This is from personal experience and wisdom gained over 40 years.
San Francisco (15 days ago)
Roger wouldn't have to sell all his assets at once so that 77K is wrong. The 77K would continue to grow.
Stjepan Suman (15 days ago)
this math is stupid. After 30 years of mortgage, you have a house, you can live in it or you can sell it and move on. With renting you have a street. So, there is no need for more math than that
Dalonghair (15 days ago)
Owen loses everything when his wife divorces him.
Crob O (15 days ago)
Rent is currently 80% taxes. We are being rented into slavery. Tax rates in Canada are 70% + for everyone. I could do the math for you but I am sure people can look this up. Do not forget the embedded taxes on products and carry over tax on tax. We all work likely 80% of the year for hook nosed trash rats to steal it all. Mortgage, french for death pledge, is a contract for more servitude to pedophile banking families under monarch contractual law between you as a corporate entity and a loan shark bank which is a corporate entity. If you do the math, it works out to over 35+ years of payments, which is longer than a life sentence in jail. Interest is the amount you have to work more each year to earn the same crappy devalued pedo dollars that are in exchange for your ability to work so that some useless trash can steal it from you through jewry taxation theft. This interest is dumped on you regardless of a mortgage through devaluation of the currency to purposely make you a slave but in this case added to the fake loan of debt based pedo dollars. They create it out of thin air and tell you to work and exchange that ability to work in return for the nothing they lent you. When you "own" the property, the gov that does not represent you what so ever and was pledged to the jews according to the New York Times who wrote in Aug 6th 1940 on page 10 that the new world order is pledged to the jews. They are the benefactors of this tax theft and it has been traced back through the offshore accounts they use. If you do not pay this theft, your land is stolen from you as if your wealth and ability to work were not already stolen. You are convinced through bolshevik re-education camps we call public schools that this is your duty and people that refuse to be t axed are thieves. What a joke these people are on both sides. Pedophile loan sharks that are worthless in every single way and dumb down sheep taking fake money and paying it back with their ability to work through slavery. The world has been made into a useless trash rat paradise for inbred kabalist pedo families while everyone else suffers and has no reason to live. You COULD reject the system and alert the sheep but they kill you and then write about how stupid the sheep are while killing any that wake up. It is very sadistic and sociopathic but coming from people that average psychosis and schizophrenia in 70% of their entire fake race of ashke'nazi, it is not entirely surprising. If you ever want to know why the world is a garbage dump and does not work, it is to match the thinking of the people in charge right now... rats wearing clothes, feeding off slavery and lies.
Frederic Koch (16 days ago)
Well interest rates went up again a few days ago, and there going up again next spring. I like to see that 500000$ house keeping its value in the next 2 years. Why pay a mortgage when the house drops 100k in value. I say rent Is way smarter. Or have house paid of in 10 years. Insurance just goes up don't forget.
Katheryn Bryant (16 days ago)
Jianjun Li (16 days ago)
How about rent increase?
Crob O (15 days ago)
Then you are renting to people who make 60k a year or more.
Kobaner Hukuk (16 days ago)
You should clear the scenario with the value at 5 year at the end of mortgage and 10 years after that.
Greg Guzman (16 days ago)
"Booroad" "Boughrhoad" Canadians man haha
Ashfaq Gul (16 days ago)
Wrong comparison 500k house rent is never $2100. That will be like 350k house renting for $2100
Ashfaq Gul (16 days ago)
Nevermind I was thinking of USA but that video is from Canada. Not sure about that.
Isaba Cash Club (16 days ago)
What about the interest "Owen" will owe on that mortgage? The real cost on that house will b much higher.
Dennis de Ruiter (16 days ago)
I think one of the best things of buying a home is the result you will have a fixed amount of costst for livingexpence. If you're morgace is today is 1000dollar then in 10 years it's still 1000dollar. If today you rent for 1000dollar maybe in 10 years you will pay 1300dollar
Michael D (16 days ago)
This is not true if you buy a house outright without getting a loan so the smart thing is to use save up and buy a house
JuicyWumbo (17 days ago)
What kind of jobs hey fucking have
James smith (17 days ago)
you should get between 8-10% your sales price for your home in rent. That house should rent for 4,000-5,000 a month in rent depending on the condition of the property. Then you take the neighborhood growth where the property in 25 years is now worth between 9,00-1,200,000. But that is in the U.S. Talk to a REALTOR and see which one is better. Almost every Billionaire in this country made their money in real estate including the President
RideWithWill (17 days ago)
lmao this is stupid. living in a house what rent costs around this area now. and youre making renter get an investment portfolio?? with same money im spending as renters, i am ALSO investing. so i get double of what this video is showing. buying a home is usually better in the long run esp if you invest or 401k as well. Once mortgage is done being paid, rent out your home and you can pretty much live anywhere while the renter cant
Alberto Echevarria (17 days ago)
sure house looks like an asset but generates no cash monthly but instead takes money in like a liability and the equity is speculation IF but it the house is turned into a rental with a few tweaks to increase the value and rented same as the mortgage! for 1st few yrs then as inflation catches up then it will create a passive income stream making the property into a real asset.
woget264 (17 days ago)
If you need to pay fpr a plave to live, why not spend it on a home where you actually gain something? Well as long as your monthly payments are similar or lower to your rent.
Crob O (15 days ago)
Because a mortgage is french for death pledge. You are pledging yourself to a bank which is owned by pedophiles. All banks are run by the same pedo families world wide. The list of countries missing central banks were called terrorists and read allowed by the P.M. of Israel over 30 years ago. Since 9-11 where they blew up their own buildings, the US has been used as a front to invade each of these from the list in order of appearance. All they had to do was lie in the ashke'nazi media over and over like the pedophile trash rats they are. The last two remaining countries are Iran and Syria, right where we are invading, bombing christian villages and laser targeting for russia to bomb them. Russia is run by Chabad pedophiles trash rats.
darf Vader (17 days ago)
Why have the guy write the words?? Annoying as hell !!
Jeziah Chevalier (17 days ago)
If you are spending almost half a million on a house why should you even each a vidio like this?
Pagan (17 days ago)
Good luck bying something in west without being enslaved by dept. Everything is so damn overpriced. Ill rent 5-6 more months and off i go back to Balkan where i own a small piece of land, ill build my own house and pay 100euro in tax per year. Here in west Europe where i live for the moment, forget that i will buy anything, home or land. Taxes are insane. As i see it you are throwing money in either case.
Paul Horn (17 days ago)
Owen also has to invest money to keep his house intact...
Percy elliott (17 days ago)
In this scenario rogers rent costs stays the same for 25 years.
Midosh Brown (18 days ago)
Fuck this ,call me a jerk but this is total bullshit , I'm not talking about the idea but about the complexity of this fucking course in accounting like wtf is this ,make it simple
StoptheNWOplz (18 days ago)
Rent doesn't go up
M Parada (18 days ago)
This is all BS. Life happens and plans always change. Everything looks good on paper, but reality is not that simple. On the long run it comes down to what kind of person and life you are leading. There are too many factors that you cant control to say one is better than the other. Save your money, live within your means and don;t commit to anything you cant really control down the line.
Andrew J (19 days ago)
Have you ever wondered why there is no currency in Star Trek? <insert your own explanation here>
Crob O (15 days ago)
The state of Israel along with the global zionist cult was dismantled and the pedophile jewish banned from all forms of commerce, government, law formation, regulation and trade? Sounds like a Star Trek utopia
Hans O (19 days ago)
Landlords in canada clearly dont want to make any money. Since you can rent a house below cost price. When You rent a house you will cover all of the owners costs plus extra for making profit. I rent out several apartments and the renters pay simular or more then the average mortgage and housing costs on those apartments per year.
Joshua Lawrence (19 days ago)
Where is the rental getting over a million in net worth and doesn't make any sense
dulton enriquedulton (19 days ago)
Am sure you are also renting,Coz buying cash is the best way and you don't need to go to a bank to get money.make money from your business,so that you can buy a property cash.renting it's a total waste.
Kings Gambit (19 days ago)
The question is when should you rent to own and are you willing to spend all your free time on maintenance? The best part of this presentation is the intent to resell your home when the vaule goes up. In other words take care of it because it is a long-term investment. If you don't have a plan to resell for profit or for your next generation to do so then it is better to just rent.
Just Think (19 days ago)
Renting makes sense, in the SHORT TERM, ONLY if you are aspiring to go into entrepreneurship. The money that I would have to put up for the down payment, plus the other initial costs you need before you buy a home, I would rather put that into a business. I want to be making at least 5 figures a month in total before I buy a home. And I just mean the home that I'm living in and not a rental property.
Selfdestructobust (19 days ago)
This isn't renting vs buying this is renting vs borrowing. Buy a house outright and rent out rooms. You'll be getting PAID to live in your home. This is substantially better than renting.
KaineAbe (19 days ago)
But not everyone who’s renting is smart in investing in portfolios 😂
Lyndell Prosper (19 days ago)
Don't use any other harker except [email protected]
Shastina (20 days ago)
Does ones "net worth" really matter when they die? Live life the best you can and remember money comes and goes! Money doesn't make a person, personality does!💯
Erin (20 days ago)
I'd rather have the house away from people. :p. Worth the extra amount.
Ricky Bailey (20 days ago)
Unless I'm missing something. Something doesn't make sense. You said Roger rents the identical house next door. Why is his rent 2100, but Owen's mortgage is 3200? There is no way that is possible. Who ever owns Roger's house would not take a loss each month. The rent each month will always be the same, probably more, because the landlord most likely is paying on the mortgage.
kab2a (20 days ago)
Most Roger the renters seem like the type of guys to spend the $1100 on weed in the week and coca on the weekend.
John Schlicker (20 days ago)
A lot of "what ifs" and funny money. The answer, no one knows.
az8868 (20 days ago)
after 25 years the renter drop dead? he wont need a house then?
katondragonrider (20 days ago)
For me you have a decision and which one is best for you. I know with my $17.50 job and constant roamining i cant do a house. If you want a house great! Just don't think it's the only asset you can have. Also it's only an asset if it just increases value from the start without paying more over time. A house is a liability until you pay off the mortgage.

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