Created by Sal Khan.
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Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/housing/home-equity-tutorial/v/home-equity-loans?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets
Finance and capital markets on Khan Academy: Is it always better to buy than rent? What if home prices go up dramatically and rents don’t? How can we compare home prices to rents to figure out what to do. This older tutorial (low-res, bad handwriting) walks us through this. It is about housing but similar thinking can be applied to any rent-vs-buy decision (spoiler alert, Sal did eventually buy a home).
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