You have $400k in cash, buy House with it or rent & invest

[Tien]

Depends on what you want to do.

If you want to throw money into a money pit, buy a house. It isn't only rent saved and property taxes. It's insurance, repairs, furniture for a house, lawn mower, appliances, etc etc etc.

Don't forget that as your house appreciates, the dollar inflates as well. So 5% appreciation isn't really 5% appreciation.

If you want that money to have actual return on investment, rent and invest.



I personally would only buy a house when I have a substancial amount of cash flow from passive investments to support being able to have a house.