Forget the American Dream—Renting, Not Homeownership, is the Path to Financial Freedom

[blackzeus]

Where in the hell is a $375K place equivalent to a $1500/mo apartment? My house costs a little less than $375K... to rent something this same square footage would cost $3000-4000 in the same neigborhood

You got boiler room stockbrokers giving advice here on the Coli breh I'll take the real estate over the hot tip, sorry A $1500/month rental apartment probably worth $250K MAX in most parts of the US.

 

[Responsible Allen Iverson]

So ya'll missed the part where it says rent at 1500 and invest the difference?

 

[tahoj4]

I don't think that anyone missed that point. I think that the advice does not make much sense. While the cost of buying property is relativity high in several metro areas it still makes more sense to buy a home in most cities. The logic does make sense that you would want to invest larger sums of money, but it still does not change the fact that you will need somewhere to live. $1500 is a lot of money for a rental in most major cities. It is a lot more if you have a family.

It makes more sense to find a cheaper home in the safest neighborhood possible to live in. If you are lucky enough to be able to find a multifamily building in your city to buy the mortgagee will be a lot higher 250k. Gone are the days of cheap investment properties. I know a few older people that make their money through rentals, but all of their rentals were purchased in the 80's and 90's. You will need access to a lot more than 50k and if you have access to that chances are you already own a home somewhere.

In my opinion it is best to start by investing up to your employers 401k match. Then move on to an IRA and after that there are easy to buy in ETF's that will start you on a good investment path. You will also still need to have a fair amount of saved money for all of the curveballs that life throws at you. The amount of money to do all of this is much more than you think. I am married with kids you would not believe the nickel and dime stuff that pops up that drains money.

It's hard for me to take investment advice from so called experts that have access to vast sums of investment capital and have lost more money in the process of trail and error than most people will ever make.

 

[GetRichOrDieTryin]

There is uncertainty

It's all about weighing whats more certain

I rather buy a home and rent out my basement than pay someone rent and make nothing

 

[Paradise50]

Big issue I'm seeing is the new housing developments that target low to low-middle folks. Folks are losing their ass on them homes because they lose value quick. Also the homes sit on a baby piece of land. It's a straight rip off imo.


Personally, I'm aiming to get a house to rent out, or just buy some land.

Also the young money is choosing city/downtown life over suburban/rural living. That's why gentrification is happening in damn near all the cities in america. Hell, W-S, NC downtown has dramatically changed over the past 10-12 years. City/Wake Forest/developers have invested so much. The bio/tech/med opportunities increased like hell here too.

 

[Bboystyle]

i rent and disagree 100%. I used to think the same but owning your own house is millions times better then renting as rent can increase and landlords dont do shyt to upgrade things...

 

[David_TheMan]

The notion that one is better than the other as an absolute goal is stupid.
It all depends on your preference, if you would rather rent save money and spend on other things and it fits your goals, do that. If you want to own a home do that.
shyt isn't really hard, there is no one size fits all recipie for success, do what makes you happy and fits your idea of what you want in life.

 

[mannyrs13]

This is why credit is so important when it comes to topics like this. Everyone should try to improve their scores. Renting is a waste. You can pay too much for something that isn't yours.

 

[TNOT]

Big issue I'm seeing is the new housing developments that target low to low-middle folks. Folks are losing their ass on them homes because they lose value quick. Also the homes sit on a baby piece of land. It's a straight rip off imo.


Personally, I'm aiming to get a house to rent out, or just buy some land.

Also the young money is choosing city/downtown life over suburban/rural living. That's why gentrification is happening in damn near all the cities in america. Hell, W-S, NC downtown has dramatically changed over the past 10-12 years. City/Wake Forest/developers have invested so much. The bio/tech/med opportunities increased like hell here too.

This is where home ownership gets tricky. If you live in a major city the gentrify trend is reshaping home values .