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

[Truefan31]

Lady asked him why did he have a mortgage and not pay off the house he said "because i took the extra money and bought stock and that stock is worth 750 million today." Man you gotta be retarded to post this video..

This guy has been living in the same house since 1958... If housing was all that why didn't an INVESTOR invest in more housing...

uh he invests a lot in real estate breh. And it's not like he rented an apartment paying rent instead of owning and invested either. Ownership is important overall to him.

You bring up Buffet you should understand his principles. I don't agree with everything he says but home ownership is imo a valuable asset, not to mention the psychological benefits like raising a family, etc.

You obviously don't agree, that's cool. But the concept isn't stupid, only the people who don't do their homework and aren't really ready who rush into it. Like your example you for whatever reason use a 400k house. That's not the typical house people buy breh.

 

[MillionMills]

Buying a home is probably the most stupid thing you can do..

The coli.com brehs

 

[Pimp]

The coli.com brehs

there's a quote in this video and it's exactly what i see in people

 

[Pimp]

uh he invests a lot in real estate breh. And it's not like he rented an apartment paying rent instead of owning and invested either. Ownership is important overall to him.

You bring up Buffet you should understand his principles. I don't agree with everything he says but home ownership is imo a valuable asset, not to mention the psychological benefits like raising a family, etc.

You obviously don't agree, that's cool. But the concept isn't stupid, only the people who don't do their homework and aren't really ready who rush into it. Like your example you for whatever reason use a 400k house. That's not the typical house people buy breh.

In NY/NJ if your house is under 400k it's a piece of shyt most likely

 

[Truefan31]

In NY/NJ if your house is under 400k it's a piece of shyt most likely

I didn't know ny and nj make up the entire US. And even in those states there's plenty of homes less than 400k.

You really think the starting point for buying a home is 400k? Lol

 

[Responsible Allen Iverson]

 

[Somewhere For Me]

The reason why so many homeowners lost big in the 2008 crash is because the majority of homeowners had their wealth tie in with their home, only.

Home market went under, wealth went under. That's how a lot of middle class Black families got hurt in '08.

For me, buying a home is a waste of time. I'm still young, single, and childfree. I have plans of traveling the world and just having fun in general while I stack my paper. My goal by 2020 is to be out of the U.S. completely.

Now, if I ever decide to get married and/or have kids I will invest in a home OR even if I stay single or childree, once I become middle age, I'll shoot for the home.

Besides, I can build my wealth in other ways.

 

[Pimp]

I didn't know ny and nj make up the entire US. And even in those states there's plenty of homes less than 400k.

You really think the starting point for buying a home is 400k? Lol

Where I live? Only way I could buy a house under 400k is if I renovate the house. I'm sorry but shyt around here under 400k is in the hood or looks like shyt.

 

[Truefan31]

The reason why so many homeowners lost big in the 2008 crash is because the majority of homeowners had their wealth tie in with their home, only.

Home market went under, wealth went under. That's how a lot of middle class Black families got hurt in '08.

For me, buying a home is a waste of time. I'm still young, single, and childfree. I have plans of traveling the world and just having fun in general while I stack my paper. My goal by 2020 is to be out of the U.S. completely.

Now, if I ever decide to get married and/or have kids I will invest in a home OR even if I stay single or childree, once I become middle age, I'll shoot for the home.

Besides, I can build my wealth in other ways.

nothing wrong with that. Again, there's a time for home ownership.

And no you shouldn't have too much invested into your home. Diversification can reduce risk. But just like the stock market, peaks and valleys will occur but in the long run it's a profitable investment.

 

[Truefan31]

Where I live? Only way I could buy a house under 400k is if I renovate the house. I'm sorry but shyt around here under 400k is in the hood or looks like shyt.

Then don't buy a home if you're not ready. But don't assume that's a general assumption for the rest of America.

 

[Pimp]

Then don't buy a home if you're not ready. But don't assume that's a general assumption for the rest of America.

You don't understand.. i get it.. some people are slower than others..

 

[tahoj4]

The renting is better than buying argument I swear is pushed by people who own the rental property. The home that you buy should not be looked at as an investment unless it is a rental property. The home you purchase should be approached as shelter. Nothing more nothing less. You want to get that shelter paid for as quickly as possible so that if you have to sell you can usually make money on the sale and pay less interest on the loan.

As a renter you are at the mercy of your landlord. You come out ahead in that you do not have to pay for maintenance of the property, and if you are a perosn that moves alot in regards to your business/job. Maintenance on a home is not as expensive as people make it out to be. With sound financial planning (emergency fund) and the right amount of insurance you should have the funds to cover what needs fixing in your home. Young people if you can afford it buy a starter home! Live there for a few years an learn about maintaining your own property. From there sell it or turn it into your first rental, but do hot fall into the trap of paying someone else 1K a month or 12K a year for shelter.

 

[REZZ]

That tweet makes no sense to me. How much is the homeowner's house worth now? How much of that $3200 was going toward principal vs interest? How much was he saving in tax deductions each year?

And 2010 to now was a great time to invest in the stock market for everybody. You ain't some financial guru for going up 56% per year. Who knows wtf will happen in the next 7 years.

 

[TLR Is Mental Poison]

I hate these kinds of articles. Let's break it down like digestive enzymes.

Don’t Ignore Opportunity Costs
Imagine having $50,000 in cash, which you could use for a down payment on a home or a down payment on a multifamily building.

Even if we set aside the flexibility issues already raised, tying up so much of your capital in a liability rather than an asset is problematic. If you take the $50,000 to buy a home, that’s money you can’t invest elsewhere, in a real asset.

In contrast, if you rent, you’re free to invest that $50,000 in an income-producing building. Perhaps you leverage that $50,000 to buy a $250,000 five-unit building, borrowing the other $200,000 and earning $1,500/month in cash flow?

So yes, you might spend a few more dollars each month on a rent payment rather than a mortgage payment for a comparable property. But does the $50/month savings justify missing out on $1,500/month passive income?

1, where can u find a 5 unit 250K building somewhere without a BX in the 70s crime rate?

2, we shouldn't forget about the cost of time either. If you handle the management yourself, which is often necessary to keep cash flow high enough, the shyt damn near becomes a full time job.

3, OK, so you have $1500 a month in income. That's pretty much rent on a decent place. So on the flip side, you could take that $50K, buy a $250K house and not have to deal with the hassle.

4. If you have nothing more than $50K, you'd be an idiot to put all your savings into a house. Me personally, we put down like 35K, and had like 3x that in savings and retirement accounts. It was another 10K to get the house right.

5. How is a house not an asset, but a rental property is Something doesn't have to generate income to be an asset

I hate these attention whore contrarians. Pro-tip, any time you hear someone mention Robert Kiyosaki in a flattering way, RUN.

 

[TLR Is Mental Poison]

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