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I could easily refute all the points in that article if I had the time. I'll suffice to give this example: "A" buys a $100,000 house, "B" rents a $100,000 house. Both pay about $1,500 per month. At the end of 15 years, "A" owns an asset worth $100,000, "B" owns nothing. You decide.
As long as our financial system works, cash is of course the best form of an asset.
And? Most people decorate their homes, put up art, paint, or otherwise like to decorate and furnish their homes. It's what makes it feel like a home rather than a box you sleep in each night for, and I'm sticking my neck out here with a guess, a plurality of humankind.
I could easily refute all the points in that article if I had the time. I'll suffice to give this example: "A" buys a $100,000 house, "B" rents a $100,000 house. Both pay about $1,500 per month. At the end of 15 years, "A" owns an asset worth $100,000, "B" owns nothing. You decide.
If you're renting a $100,000 house for $1,500 a month, you are probably overpaying on rent, no?
The first point I would make is that unless you're independently wealthy, you're either going to be renting housing or renting money. All else equal, thirty years later you'll own some money or you'll own some property, respectively. The trick is in the "all else equal" part, because given rent versus price ratios, interest rates, and inflation expectations one or the other may be a far better deal.
Secondly, in a lot of desirable areas renting an equivalent property is far cheaper than buying. A lot of that has to do with the fact that rentals aren't usually quite as nice in terms of location, condition, and accoutrements as owner occupied places, but the effect often remains after correcting for this.
Good reasons to own your house? If you have pets, finding a rental can be really hard. If you enjoy renovating and general handypersonship maintenance might be a feature as well as a bug. Finally, if market conditions make it a no-brainer.
Tl;dr don't pay more in mortgage than you'd be comfortable paying in rent, and don't feel like you need to own a place to be a grownup.
"Why I Am Never Going to Own a Home Again"
Buy a house because you want someplace to be your own, that you can customize, and really be part of a neighborhood, and not worry about asking a landlord for permission.
I bought a house because all the apartments I looked at for the price were dumps, and in a house at least I had incentive to fix the stuff that made it a dump.
I could easily refute all the points in that article if I had the time. I'll suffice to give this example: "A" buys a $100,000 house, "B" rents a $100,000 house. Both pay about $1,500 per month. At the end of 15 years, "A" owns an asset worth $100,000, "B" owns nothing. You decide.
Because of this the costs of ownership once mortgage, taxes, utilities and maintenance are tallied up are often more than what a person was previously spending on rent.
Secondly, his major point is that home ownership involves a cash down payment. Its' not a case of person A/B spending 1500 per month, its a case of person A buying a 100k home and paying 20k in cash for the right to a loan. That 20k may have been better spent in more volatile and profitable investment than home ownership.
Third and lastly, a house can lose value. Did the major employer leave the area or downsize (e.g. Detroit most prominently, Ghost towns, and a scattering of towns all over US that relied on heavy industry)? If so, then your house value has fallen. Did the area fail to gentrify or did you buy in a bubble? If so, then your house value has fallen. Has there been a disaster that the economy hasn't recovered from (e.g. Katrina, coal slush floods in W. VA, BP oil spills effect on homefront properties)? If so, then .....
The argument that a house is an investment fails because it is the least liquid of investments, and thus harms the buyer the most when the prices fall. You can always sell your stock even in a strong downturn, but who is going to buy your drafty McMansion situated in an edge of town neighborhood in a down economy?
Earlier quoted context omitted.
If you're renting a $100,000 house for $1,500 a month, you are probably overpaying on rent, no?
In the UK at least, rent is higher than the equivalent mortgage payments at the moment. I pay around 2/3rd the cost of what friends pay for their rented property and this is common across the country. This has been caused by the decline in mortgage lending.
My small 2 bedroom end of terrace costs me just more in mortgage payments than a 4 bed detached house in the same town. The reason? I bought at peak of market in 2007 whereas the people renting out the big houses bought 10+ years ago when such houses cost little more than my shoe box. Given the total lack of a job market, too, the rents have failed to increase.