Ah, so if you’ve got some money right, should you buy your own place to live there? This is what I’m assuming you’re asking. If you’ve got a little bit of money should you buy your own place to live in or should you just rent somewhere? I think we’re talking about where you live. Would you buy your way of living or would you rent your way of living? It’s an interesting discussion.
Okay, if you’re going to buy a reasonably sized house to live in to be comfortable, then the cash flow you can generate for it, unless it’s convert going to flats or a HMO, the cash flow curve as the house gets bigger, the cash flow gets smaller. So, big house low cash flow, smaller house big cash flow.
I would rent. Just invest your own capital or your friends capital or your family’s capital or with the capital that you’ve got into assets and then live on a cash flow basis. That’s what I would do. If you buy the home you have the feeling of “it’s my thing, it’s mine.” But, I personally prefer to rent, I’m just mobile and the flexibility of renting means you’re not tied in long term to that house. It gives you a little bit of security if you own it, and I’m probably going to be really controversial by saying all of this because I would buy a property and develop it and stuff, but, I’m saying you should just rent your own place.
It’s simply because you if you live there, you can probably strike a deal with the landlord when you can do some minor works, some renovations to the unit and make it feel like home. Sometimes people say when you’re renting it just feels like you’re renting, it doesn’t feel like home. But, if you can renovate it and make it a little bit your own and do some decorating it feels like home. You’re not paying that much more than if you have a mortgage.
But, if the broiler breaks, you don’t have to pay to fix the broiler, if subsidence starts you don’t have to have to pay to get subsidence fixed, if the roof breaks you’re not going to have to pay to get the roof fixed. And, if you decide “you know what, next year I want to live in London,” or “I want to live in Spain,” or wherever it is, then you can just move. It’s straightforward that way.