I don't make any assumptions about that 8% - I used the figure and the assumptions from the original article.
If you rent, and put the difference into a savings account, then using the assumptions from the article, you'll be able to buy a house outright in 20 years.
I think you're pretty much agreeing with that..?
I am of course assuming that interest rates (or other return on investment), house prices, inflation and salary increases are all sensible, going in the same direction at the same rate, or near enough.
If you put your money in a pure tracker (e.g. tracking the Dow Jones, FTSE 100, or similar index), then you'll probably be better off in the long term, perhaps able to buy outright in a little less time.
If you rent, and put the difference into a savings account, then using the assumptions from the article, you'll be able to buy a house outright in 20 years.
I think you're pretty much agreeing with that..?
I am of course assuming that interest rates (or other return on investment), house prices, inflation and salary increases are all sensible, going in the same direction at the same rate, or near enough.
If you put your money in a pure tracker (e.g. tracking the Dow Jones, FTSE 100, or similar index), then you'll probably be better off in the long term, perhaps able to buy outright in a little less time.