Is it better to buy or rent a house? Those who calculate too clearly may cry in the end.

On the one hand, house prices are soaring, and on the other hand, the property market control measures are frequently "punching", leaving many people who are already confused about whether buying a house or renting a house is more cost-effective. If you choose to buy a house, you will become a "house slave", and you may only have a suite for the rest of your life; if you choose to rent, you will be unstable and lack a sense of security, and you may not even have a suite for the rest of your life. So, is it better to buy or rent a house?

Is it better to buy a house or rent a house? Do the math first

Whether it is better to buy or rent a house, in fact, it all comes down to who spends less and who makes more. That's a math problem. The editor thought about it for a while, and there are only two methods:

1. Annual cost method

The buyer’s cost is the opportunity cost caused by the down payment, and the housing loan interest. The cost of use for renters is rent. These factors can then be considered to calculate the cost.

2. Net present value method

The net present value method considers the cash flow of renting and purchasing a house to be restored to the present value (time value of funds) during a fixed period of residence. Comparing the present values ??of the two, the lower one is more economical for us.

Do you understand? I was taught mathematics by a Chinese teacher. After reading the formulas calculated by many people, I came to the conclusion that it is more cost-effective to rent a house based on the comparison of house prices and rental prices in recent years (without taking into account factors such as rent increases and interest rate changes). .

"Smart people" who are good at mathematics may cry in the end

But human calculations are not as good as heaven's calculations. What is heaven's calculations? It’s the things you can’t calculate accurately, such as: whether the rent will be adjusted every year; the potential for house prices to rise; and the level of interest rates. We can calculate the cost of buying and renting a house through rational formulas, but we can't predict it in advance.

Another example:

There was news two days ago that buddies who worked together once rented a house together. One chose to buy a house and worked hard as a house slave, having to make the monthly payment with a sad face every day; the other, after seeing the jokes made by his fellow house slaves, made up his mind not to buy a house, but to live in someone else's house and use his money to enjoy life. , and the rent is much lower than the monthly mortgage payment.

Ten years have passed, and the brother who rented the house cried. Because although wages have increased, rents have also increased, and the increase seems to be just a little bit higher.

Let the data speak for itself. The editor found a set of data from the official website of the China Real Estate Association. In the first half of this year, monthly residential rents in first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen also showed an overall growth trend. Among them, monthly rent in Beijing has risen from 4,262 yuan in January to 4,743.98 yuan in June, an increase of 11.3%.

The editor feels that the most pitiful thing is not that the rent is more expensive than other people’s monthly payments, but that the house price has already skyrocketed, and it is no longer the house price that you could get by just stepping in. I won’t post a price chart, it’s too exciting.

To sum up, whether to buy a house or rent a house still depends on your expectations for income, your expectations for house price increases, your expectations for rent increases, and most importantly, how big your wallet is. quick.

Who is not suitable for buying a house?

1. Young people who have just entered society. Generally speaking, young people who have just started working have low incomes and low expenses. If they don't become a qianolao, they can't afford a house. A qiaolao can also easily spend all the life savings of their elderly parents. If you are unfortunate enough to live in Beijing, Shenzhen, or Shenzhen, your parents’ lifetime savings may not be enough for the down payment. Therefore, renting is not suitable for young people who have just graduated. Sharing is the best option. You can have friends to communicate with, you will not be lonely, and you can save money. Taking on a mortgage loan too early beyond one's ability is an overdraft for the future.

2. Those whose work location and living scope are not fixed. To put it bluntly, people who often travel on business and change places are not suitable for buying a house and settling down. Because the house is real estate, it won't just leave as you say. Therefore, this kind of people should not buy a house impulsively, but can rent a house first. Of course, if you have money and are optimistic about the real estate market, you can invest instead of living there.

3. Families with little savings. To put it bluntly, if your family has no money, don’t buy a house. Down payment + deed tax + company maintenance fund + insurance fees + decoration + purchase of home appliances and furniture = about 40% of the total house price. Taking Shenzhen as an example, if you buy a house worth 4 million yuan, you will definitely be stretched thin if you don’t have 1.6 million yuan in hand.

Therefore, for friends who have unstable income and do not have strong financial resources, renting is quite good if they do not have the financial strength to buy a house. At least they can rent a house that is larger and more convenient than buying a house.

4. Those who do not need to buy a house urgently and cannot discern the trend of house prices. Everyone agrees on whether house prices are going up or down. It's difficult to observe the trend of housing prices with the naked eye, so you don't have to rush to buy a house right away. It's better to "pause the brakes" by temporarily renting a house and wait and see how it changes. Of course, the same sentence remains: if you are rich, you can buy whatever you want.

5. People who have particularly high requirements for the quality of life, such as Venus, who is famous for talk shows, such as Gao Xiaosong. Jin Xing would rather spend millions a year renting in a hotel than buying a house, because she said renting gives her greater freedom and choice.

Buying or renting a house is not just a question of money

In a city like Beijing, a house means a lot. For example, if your child goes to kindergarten, some kindergartens stipulate that the tuition fee for a house is It is lower than those who don’t own a house. For example, if you apply for a temporary residence permit and your children go to school, the landlord will not lend you the real estate certificate. Another example is...

Rent reflects the income level of ordinary people, and there are bubbles in housing prices. It reflects the paying ability of high-income people. As ordinary people, the income we earn after working hard for most of our lives may not be enough to buy a house for ourselves or our family.

Then again, some people think that it is a great comfort to have a place where you can stay in a corner when you are tired from running around in this world; some people think that a house is not a root, but a family. Yes, if you are with the person you want to be with, what does it matter whether you have a house or not? Some people think that if you only have enough money to buy a house or invest in yourself, you might as well buy it and be happy. (Financial Factory)

(The above answer was published on 2016-11-23, please refer to the actual current home purchase policy)

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