Real Estate Economics: Comparing Renting and Buying

This lecture covers the economic analysis of renting versus buying real estate properties, focusing on financial implications over a 2-year horizon. It discusses the costs and benefits of each option, including cash flows, interest rates, charges, and resale values. The comparison is made through various financial formulas and calculations, highlighting the advantages and disadvantages of both alternatives. Additionally, it explores the general principles of real estate economics, such as the concept of net present value and the importance of financial planning in property decisions.