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12 Rent vs Buy Articles You Absolutely Must Read
Is Buying a House a Terrible Investment?
1. Why your house is a terrible investment
James Altucher calls homeownership a part of The American Religion, so I know I’m treading dangerous ground here. But before you get out the tar and feathers, let’s do a little thought experiment together...
2. Why you should absolutely rent instead of buying a home
If you rent, I’m sure you have come across one of these people at least once in your life. And it’s most likely coming from a loved one who genuinely cares about you...
3. 'Renting Is Throwing Money Away' Is Completely False
You might have heard the old adage "renting is throwing money away." It seems like common sense. You don't buy anything when you rent, but you keep to keep the house you buy. However, nothing could be further from the truth...
4. Why The Rent Vs Buy Debate Is Completely Pointless
After saving up for a long time, I recently bought a home, which caught some of my friends off guard. "I thought you were anti-homeownership," they said, because I think renting is underrated. Even as a homeowner, I still think renting is underrated. That doesn't mean buying is a bad decision. The rent vs buy debate is just silly overall. It ignores the enormous grey area that exists between the two options...
5. The 30-Year Mortgage is an Intrinsically Toxic Product
Attention conservation notice. This jeremiad is all about financial policy, which I know is not a topic all of my readers are interested in. This piece is only relevant to you if you own a home in the US (because mortgage rates matter) if you rent in the US (because market rents are set in comparison to the cost of owning), or if you save and/or borrow money anywhere in the world (because of the US mortgage system’s effect on long-term interest rates. Readers who live in monasteries, survivalist compounds, or the Sentinel Islands can safely skip this one...
6. The Absolute Insanity of Not Buying a Home When You’re Young
If you’re young—under 40 or so—and have been heeding the personal finance advice spewing forth from some of the most popular columnists and bloggers over the last few years about how owning a home doesn’t make financial sense anymore, I’m afraid you’ve been duped...
7. The Renter’s Manifesto
“Stop throwing your money away on rent.” You see the phrase in Realtor junk mail and hear it from new homebuyers who are immersed in the nightmare of paperwork, points, and plastering.
There is a kernel of truth to all of this. But it’s mostly crap. I’ve been a renter all my adult life, and I have plenty of home equity. My home equity is called “cash,” and it’s the accumulated difference between what I pay in rent and what a comparable homeowner pays for their mortgage, maintenance, property taxes, and utilities.
8. Rent vs. Buy: If You Have to Ask, You Should Probably Rent
Four years into writing this blog, I thought I had seen almost everything when it comes to the most common financial suicides committed by the middle class. But today I was hit in the head by a shocking realization:
"When choosing between buying versus renting a house or apartment, people are making much, much worse choices than I would have thought possible."
9. Homeownership Is Not The American Dream
I got to wondering about how homeownership ever became connected to the American Dream, but at some point, it certainly did. In fact, some have argued that homeownership is what separates the poor from the middle class. Merrill Lynch says 84% of Americans agree homeownership is part of the American Dream. However, a more recent survey by the American Institute of CPAs says homeownership was the top indicator of financial success for only 11%...
10. WHY I AM NEVER GOING TO OWN A HOME AGAIN
Many people have said to me in the past month, “I’m going to buy a home.” Or, “What do you think of the idea of me buying a home?” I like the second batch of people. They are my friends and it seems like they are sincerely asking for my advice. And I’m going to give it to them. Whether they meant it or not.
11. The Opportunity Cost of Home Ownership
If you have a mortgage (and I count myself among you!), we are on the hook for huge sums of money and it may be smart to focus our energy on finding creative ways to pay down the debt. Doing so could potentially save thousands in interest payments and reduce the mortgage term significantly.
12. Renting vs. Buying: The True Cost of Home Ownership
Owning a home does not somehow make it free to live in. When you look at the numbers, which I will do shortly, you can see that notion is completely false. Home ownership has clear, quantifiable, ongoing costs, just like renting. For different people in different times and places, one approach or the other can make more sense.
Helping People to Be Really Realistic
Is Renting the New Smart Norm To Build Your Wealth?Read...
by Alex Ershov @ 2019
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