Own a house to rent out as investment

Rent a house to live in it https://twitter.com/supaaronpaul/status/1136757191065645057

Why?

Buying a house is probably your biggest financial transaction in your life.

Buying a house to live in, usually with your partner, brings lots of emotions. Emotions are the worst thing to have when making financial decisions.

If you want to buy a house, treat it as an investment decision, not an emotional one.

Research countries, cities, neighborhoods, where to buy. Find areas underdeveloped so you gain from the price increase.

Living in the house you own is the script society tells you. But it doesn't always make sense. Esp. not if you do it with a partner.

People split up, divorce, all the time. If you sell before owning a place on avg <15 years, you'd be better of renting.

Renting gives you flexibility. You might change jobs, cities, relationships, and renting allows this.

In Europe esp., you get lots of protections as a renter (more than in US generally).

How many stories you know of people buying a house and then having to deal with their crazy neighbors? Right. If you rent, you just go to a new place.

Meanwhile ownership makes A LOT of sense, if you have lots of money or can get a cheap fixed low interest mortgage and can buy in an underdeveloped area. Prices may rise faster than a diversified portfolio of stocks.

But living in the house you own doesn't necessarily make sense

People say renting is throwing money away, but that's an urban myth propagated by real estate agents and banks to make you buy:

A famous calculator by NYT to find out what's better: owning or renting, can work it out: https://www.nytimes.com/interactive/2014/upshot/buy-rent-calculator.html

Now adjust that to the market return of the FTSE