The Rise of the Rich Renter
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The Rise of the Rich Renter
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Re: The Rise of the Rich Renter
#2It may also be that smart rich people have gotten over the cult of homeownership: https://www.ft.com/content/00bf5968-f518-11e2-b4f8-00144feab... or http://www.slate.com/blogs/moneybox/2013/07/29/political_eco.... Or search for the term "The cult of homeownership" for more.
There are well-known possible positives to owning but the negatives are vast too, especially compared to investing in an ultra-low-fee index fund in lieu of a house.
Owning a house also made more sense in an era in which a single worker expected to work for a single company at a single site for decades. In an era when two workers may work for a myriad of companies for ranges of six months to ten years, it makes a lot less sense.
Re: The Rise of the Rich Renter
#3It may also be that smart rich people have gotten over the cult of homeownership: https://www.ft.com/content/00bf5968-f518-11e2-b4f8-00144feab... or http://www.slate.com/blogs/moneybox/2013/07/29/political_eco... . Or search for the term "The cult of homeownership" for more. There are well-known possible positives to owning but the negatives are vast too, especially compared to investing in an ultra-low-fee index fun…
realy so why are non residents buying housing as an investment in London Sf NY and Vancouver?
And if your rich diversifying from just a me to index fund makes a lot of sense hint if the Rothschild's and other mega rich families run actively managed funds its probably a good idea for you to - I have done very nicely out of RCP on the LSE
Re: The Rise of the Rich Renter
#4Don’t kid, most people aren’t renting because they prefer it. We shouldn’t glorify unaffordability. My “rich” coworkers would largely love to own but they can’t afford the mammoth down payments, and the sky high rents plus sky high taxes make it difficult to save.
“One of Aesop's best-known fables is “The Fox and the Grapes.” On its surface, or its literal level of meaning, the story tells of a fox who wants a bunch of grapes hanging above his head. The fox tries desperately to reach the grapes but cannot. He finally gives up, saying that the grapes are probably sour anyway.“
Re: The Rise of the Rich Renter
#5It may also be that smart rich people have gotten over the cult of homeownership: https://www.ft.com/content/00bf5968-f518-11e2-b4f8-00144feab... or http://www.slate.com/blogs/moneybox/2013/07/29/political_eco... . Or search for the term "The cult of homeownership" for more. There are well-known possible positives to owning but the negatives are vast too, especially compared to investing in an ultra-low-fee index fun…
realy so why are non residents buying housing as an investment in London Sf NY and Vancouver? And if your rich diversifying from just a me to index fund makes a lot of sense hint if the Rothschild's and other mega rich families run actively managed funds its probably a good idea for you to - I have done very nicely out of RCP on the LSE
Cause they can't find other save investments and have cash burning in their pocket.
Re: The Rise of the Rich Renter
#6Earlier quoted context omitted.
realy so why are non residents buying housing as an investment in London Sf NY and Vancouver? And if your rich diversifying from just a me to index fund makes a lot of sense hint if the Rothschild's and other mega rich families run actively managed funds its probably a good idea for you to - I have done very nicely out of RCP on the LSE
Cause they can't find other save investments and have cash burning in their pocket.
Why are not stocks /funds on the LSE NYSE the same unless the cash is from the black market and they cant pass money laundering regs?
Re: The Rise of the Rich Renter
#7Don’t kid, most people aren’t renting because they prefer it. We shouldn’t glorify unaffordability. My “rich” coworkers would largely love to own but they can’t afford the mammoth down payments, and the sky high rents plus sky high taxes make it difficult to save. “One of Aesop's best-known fables is “The Fox and the Grapes.” On its surface, or its literal level of meaning, the story tells of a fox who wants a bunch…
To your anecdote, I raise mine. At this stage in my life, I don't want to own a home for most of the reasons in the article they've listed.
Re: The Rise of the Rich Renter
#8My wife and I are in this percentage. Both educated, making ok money but with a new family and undergrad loans still looming it feels like homeownership is still years away. I will probably be 35 by the time I can buy my first "starter home".
We are moving all around the country to find better and more affordable places to live. In fact now that my wife has her master's we're chasing clinics that provide loan repayment just so we can get our debt out from under us.
Another reason we keep renting - I've worked other industries that do poorly during a recession and tech feels no different. I'm highly predisposed to not being stuck with a huge mortgage when things get tough which means in a lot of cities I'd never feel comfortable buying a home (insinuating that we couldn't survive on one income).
Re: The Rise of the Rich Renter
#9Here’s the upshot: rich households—those earning more than 120 percent of the metro median income—saw their renter share rise by 1.2 percent between 2012 and 2015. Since 2006, that growth was a striking 6.2 percent. The renter share among households making less than 50 percent of the median income, on the other hand, remained roughly the same since 2012. Since 2006, it grew by a modest 2.9 percent. More educated subsets of metro residents also gained renters in this period.
This does not make much sense how the author derives the 6.2% figure and then says its 1.2%, nor does a 1.2% gain over a 3-year period seem like much.
Re: The Rise of the Rich Renter
#10It may also be that smart rich people have gotten over the cult of homeownership: https://www.ft.com/content/00bf5968-f518-11e2-b4f8-00144feab... or http://www.slate.com/blogs/moneybox/2013/07/29/political_eco... . Or search for the term "The cult of homeownership" for more. There are well-known possible positives to owning but the negatives are vast too, especially compared to investing in an ultra-low-fee index fun…
realy so why are non residents buying housing as an investment in London Sf NY and Vancouver? And if your rich diversifying from just a me to index fund makes a lot of sense hint if the Rothschild's and other mega rich families run actively managed funds its probably a good idea for you to - I have done very nicely out of RCP on the LSE
Money laundering, safe durable stores of value protected from their governments' confiscation efforts, pure speculation, and being on the wrong end holding the bag all spring to mind.