Renting vs. Buying a Home: The 5% Rule
Ben Felix · 6 HN recommendations
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Ben Felix explains how to compare renting and buying a home by looking at unrecoverable costs, and distills it into the 5% rule of thumb. It is framed for a Canadian audience but broadly applicable.
Why HN recommends it: HN points to it for a clean first-order framework for the rent versus buy decision.
“This guy breaks down the analysis very cleanly to a first-order approximation, using 2019 figures” Read on HN ↗