Renting vs. Buying a House: Which Actually Builds Wealth?

RESEARCH & RESOURCES USED IN THIS VIDEO: 1. Historical Stock Market Returns (S&P 500) S&P 500 Historical Performance: The S&P 500 has historically delivered an average annualized return of ~8–10% over multi-decade periods before inflation. Resource: [S&P Dow Jones Indices / Wall Street Journal Data] 2. Renting vs. Buying Financial Models & Calculators The 5% Rule of Real Estate (Ben Felix / PWL Capital Model): Used to estimate the unrecoverable costs of homeownership (1% Property Taxes + 1% Maintenance + 3% Capital Cost/Interest). NY Times Rent vs. Buy Calculator: Interactive tool for factoring in opportunity costs, inflation, and local housing appreciation rates. Link: https://www.nytimes.com/interactive/2014/u... 3. Home Maintenance & Upkeep Benchmarks The 1% Maintenance Rule: Real estate standard metric recommending homeowners budget 1% to 2% of the home’s purchase price annually for ongoing repairs and capital expenditures. Resource: Real Estate Financial Benchmarks & Property Meld Data 4. Real Estate Transaction & Selling Costs Closing Costs & Commission Impact: Realtor fees, title insurance, and closing expenses typically average 6%–10% of total home value upon sale, driving the "5-to-7 Year Rule" of homeownership stay duration. Resource: National Association of Realtors (NAR)