Name: 租房VS買房（詳細分析 (Renting vs. Buying (detailed analysis))
Uploaded: 2021-01-14T04:45:07.000Z
Duration: 15 min 17 s
Description: 【看影片學英語】數萬部 YouTube 影片，搭配英漢字典即點即查，輕鬆掌握單字發音與用法，長久累積看電影不必再看字幕。

So I've done this series of presentations about housing.

And at least, my thesis on why housing prices might have gone

up, and how you should maybe, in simple terms, think about

But one thing that's happened, a lot of people said, oh, Sal,

you're making oversimplifying assumptions.

You're not factoring in the tax deductions of mortgages,

Which I did, but I did make some simplifying assumptions.

So that we could kind of do back of the envelope math, and

just think about what the main drivers are when you think

You really should do a multi-line model, trying to

And really figure out what's going to happen to you if

If you put 10% down, or 20% down, or whatever.

So with that in mind, I've constructed this model.

What I called, this is the home purchase model.

And you can download it yourself and play with it.

I think this will prove to be useful for you.

So if you have Excel, you should be able to access it.

So just khanacademy.org/ downloads/buyrent.xls.

So once you download it, let me explain what I

So what I did in yellow, both this bright yellow and this

less bright yellow, these are our assumptions.

These are the things that are going to drive the model, and

tell us whether over -- and I calculated over 10 years --

whether we will do better renting versus buying.

And so if you download this model and want to play with it

yourself, unless you are fairly sophisticated with

Excel, the only things you should change are

You could, if you want, you can just write like I wrote,

So you can write the exact number, or you can just leave

And whatever the down payment percentage is,

So principal amortization just means, well, if I just keep

paying this mortgage, after how long is the entire

principal amount -- not just interest, how long is the

entire principal amount going to be paid off in?

So essentially, a 30-year fixed rate loan has a 30 year

If you have a 10-year loan, you'd put 10 here.

This is what I assume because I live in California, and in

most areas of California, that's the property tax.

This is what I assume about annual maintenance.

Some houses might be less, might be more.

Maybe if you live in a community that has a shared

golf course, or a shared pool or something.

This is annual insurance, for things like hazard insurance,

and flood insurance, earthquake insurance, or

whatever insurance you need where you live.

And in this bright yellow, I say, what is the assumed

And that's why I put it into this bold yellow color.

Because we'll see later in this video that to some

degree, that assumption is one of the biggest drivers of

Or you could say the model is very, very, very sensitive to

Here, this is your assumed marginal income tax rate.

Well because you can deduct the interest that you spend on

And also you can deduct, actually, the property tax.

So if you can deduct $100 in interest and property tax, if

your marginal tax rate is 30% -- so that means at what rate

are you being taxed on every incremental dollar.

If it's 30%, that means a $100 deduction will save you $30.

If your marginal tax rate is 20%, a $100 deduction will