Is it worth renting a house for 10 years or paying a mortgage? Do the math and you'll see

About "Which is better to rent a house for 10 years or pay a 10-year mortgage?" It varies from person to person. In other words, whether this is a good deal depends on the trend of house prices over the next 10 years compared with each person's own opportunity cost.

The first scenario: if you have enough money in the bank now and only in the bank, and house prices rise steadily over the next 10 years. Then you should buy a house right away.

For example, in Beijing, the monthly rent for renting a house with a market value of 1 million yuan is about 2,500 yuan, and the monthly interest income of 1 million yuan is only 1,875 yuan. It's obviously worth buying a house.

The second situation: for a person who can not manage money at all and will only buy a house with a mortgage loan of a dead salary, under the premise of stable house prices and rents, it is not right to buy a house now. For example, renting a 1 million yuan house in Beijing costs about 2,500 yuan a month, and the total rent for 10 years is about 300,000 yuan. The loan to buy a house of 1 million yuan monthly interest is about 4,500 yuan (assuming that it is a full loan, or your own money can also get the interest equivalent to a bank loan. In fact, this is very simple, you lend money to your relatives and friends to buy a house at the interest of the bank loan, and mortgage his house to you). The total interest payable on the loan for 10 years is about 540,000 yuan, which is definitely a good deal to rent a house. You might say, "I'm not going to pay interest every month, I'm going to pay less and less interest every month." Let me remind you that your own money is also subject to interest

The third scenario: in the next 10 years, the rent will not change, and the house price will rise, that is to buy a house.

If you buy a $1 million house now, it will be $2 million in 10 years. Well, you're getting a real bargain when you buy a house. Because you will pay only $240,000 more in interest over the next 10 years than you would if you rented, but your house will go up by $1 million. You got a bargain of $760,000. In other words, if home prices rise 24% or more over the next 10 years and rents remain the same, you should buy now. Of course, if rents rise, so do house prices, you should buy a house.

Fourth case: You should not buy if you have better uses for your funds.

For example, you can invest in a business with good benefits, even if the money is the seed of your business, if you use the down payment of 200,000 yuan to your business, the money you earn in the next 10 years is far greater than the rise in house prices, then you should not buy a house now. -

1. He didn't foresee that house prices would really rise so much over the past few years.

2, if you do not rush to buy but rent a house to live in, these houses will not rise in price at all or will not rise so much;

3. They think they can make more money by using the money from selling their houses to build more houses than they can by increasing the price of their houses.

Scenario 5: House prices fall and rents stabilize. All the more reason not to rush into buying a house.

Case 6: For any reason, you think that the total amount of happiness you get from buying a house is far greater than the total amount of happiness you get from renting a house. You must buy a house. For example, you find a favorite girlfriend, you would die for her, and if you don't have a house, she won't marry you. Then you should buy a house right away if you're a mortgage slave for life. -

In general, if the calculation is purely economic, if house prices and rents are relatively stable over the next 10 years, it is definitely a good deal to rent; If house prices rise by more than 24% over the next 10 years and rents remain the same, then surely it is better to buy a house; Even less so if house prices are going to fall in the next 10 years. -

However, I believe that housing prices in major cities across the country will decline in the next 10 years. Because:

1, the rent-to-sale ratio of China's major cities has long broken through the international warning line, a country with scarce capital will build a large number of funds to live in a large number of houses is a huge waste of social resources. -

2. Population aging will soon make China's population grow negatively.

Not long ago, I heard several junior high school students say: I will have three houses when I grow up, my grandparents gave me a set, my grandparents gave me a set, and my parents have bought a set for me. Just imagine, who is going to live in so many houses?

3. Many people who are going to get married after two years have already bought their houses in advance because they are worried that housing prices will continue to rise, which will reduce the future market demand;

4. Most of the new urban population will not be able to afford a house in five years at the current price;

5. The introduction of national macro-control policies;

6. More and more people know that the bubble is getting worse.

In my opinion, here are six types of people who can buy a home in a period when prices are most likely to crash:

The first type of people: people who have more money than they can spend. Because money is meant to be spent, money earned if not spent is equal to not earned. People can spend their own money as they like, no one is in charge. As the old saying goes: "A thousand pieces of gold can't buy a smile", that is to say, someone is willing to spend one thousand gold to buy someone else "smile", then spend more money to buy a house they like why not?

The second kind of people: corrupt officials. Because these people's money is not earned by their own efforts, they can also "money laundering" after buying a house.

The third kind of people: people who make mistresses for others when they are lovers. Because as long as these people have the opportunity to buy a house, there is no need to consider the cost. Otherwise, if you miss the opportunity, you will not get the benefit.

The fourth kind of people: people who want to satisfy the "pleasure" of buying a house. Because he's willing to pay for it to get "high."

The fifth type: people who can't manage money. Because these people don't know what choice is really good for them.

The sixth type of people: people who are convinced that certain houses in a certain area will continue to increase in price and have the ability to buy.

The above six types of people can completely buy a house. Otherwise, if you don't buy a house, where will there be so many good houses to rent? Of course, only let these people go to buy more houses, can financial management people can rent a good house at a low price!