Is rent dead money? Are you throwing your money away? Should you rent or buy? This is a complex question but when you are trying to make up your mind keep some perspective.
Is rent dead money? Well, not really, you still have to live somewhere, people don’t say ‘why are you throwing your money away on food, or clothes to wear’. If a person asks you this ask them ‘Why throw away money on mortgage interest, property related taxes, management fees etc.’
As an investor there are one set of rules, as a homebuyer there are another, the same as the difference between a person who buys a car for personal transport or as an investment – when you buy for yourself you can get a functional car or a fancy one, equally there are standard and trophy home, a car as an investment is a trickier proposition.
The argument currently for a property purchase has more to do with credit pricing and the ability to afford to buy …