Renting vs Owning: The Magical Neutral Interest Rate to Tip The Scales
Channel: The Everyday Investor - hosted by Darcy Ungaro
Date: 29/03/2024

What is a neutral interest rate with house prices?

For most people it's the interest rate that makes renting, the same cost as borrowing 80% of that exact property.

In other words, if 80% of the property value was borrowed, and this was the same cost as paying rent for the exact same property, people generally struggle to decide on renting vs owning.

It's not scientific, but over 21 years watching, it appears to be around 4.5%

Check out full episode: https://bit.ly/3TzPqR5

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