Is it better to buy or rent a house?

Just chatting. Usually, when this rent vs. buy debate comes up, the comments section often gets heated. People posting these opinions are often called 'bagholders' or 'empty shells' because, honestly, from the pandemic until now, unless you were forced into a high point by the 'New Youth Housing Loan' late last year and got stuck, the difference is just how much you profit. Realistically, is buying a home for self-occupation a good idea at this point in time? (Don't call me a bagholder, I've already completed my 10th rental property in Taipei City.) Purely comparing rent to housing price (market price), with the current mortgage interest rate at 2.6%, an average 10 million NTD property generating less than 260,000 NTD annually in rent (less than 21,666 NTD/month) is just breaking even on interest, doing a good deed. From an investment perspective, if you want at least a 5% return on capital, considering leverage: With a 20% down payment, the return is 3.08% / With a 30% down payment, the return is 3.33% With a 40% down payment, the return is 3.56% / With a 50% down payment, the return is 3.8% X needs to achieve a 5% return on investment. The formula should be X + (Loan-to-Value Ratio / Down Payment Ratio) * (X - 2.6) = 5 So, X = [5 + (Loan-to-Value Ratio / Down Payment Ratio) * 2.6] / [1 + (Loan-to-Value Ratio / Down Payment Ratio)] This means that in the current property market with little upward momentum, properties or areas with a market return less than 2.6% are better rented than bought for self-occupation. For properties where the return on capital cannot reach 5%, investors are better off putting their money into 5% yield assets, unless there's redevelopment value or other special upward momentum.