Why You Should Never Buy a Home Again
jamesaltucher.com
Why You Should Never Buy a Home Again
1–10 of 99 posts
Re: Why You Should Never Buy a Home Again
#2(adds on to headline)..."if you have a difficult time reading market conditions, don't understand your financial situation and feel comfortable moving your belongings from house to house every few years."
Re: Why You Should Never Buy a Home Again
#3I 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.
Re: Why You Should Never Buy a Home Again
#4(adds on to headline)..."if you have a difficult time reading market conditions, don't understand your financial situation and feel comfortable moving your belongings from house to house every few years."
..."and don't mind being at the mercy of inflation when your landlord jacks up your rent 10% with a month remaining on your lease."
Re: Why You Should Never Buy a Home Again
#5Yeah, that's it. Lease everything, don't own any assets. Let me know how that works out for you.
Re: Why You Should Never Buy a Home Again
#6I just had the opportunity to sell a large 30-year fixed-rate bond with massive leverage into an overheated bond market with damn near a guarantee of serious inflation over the next 30 years. Thank you, Bank of America!
Re: Why You Should Never Buy a Home Again
#7I 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?
Re: Why You Should Never Buy a Home Again
#8I 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.
In some markets (like St Paul where I am) "B" doesn't pay as much as "A". For example right now I rent a sweet house for $2500 that I've been told the mortgage is 3600 + a hefty association fee + prop tax + maintenance.
Oh not to mention the value the property has already lost since purchase, and is still modestly loosing each and every month.
Re: Why You Should Never Buy a Home Again
#9I 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?
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.
Re: Why You Should Never Buy a Home Again
#10I 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.
Depending on the market, there are times when renting is actually cheaper than buying, also considering that you pay taxes, repair, and maintenance on a house you own.
See here for an elementary explanation: http://www.khanacademy.org/video/renting-vs--buying-a-home?p...