Why Buying A Home Is Usually A Terrible Investment

Posted on

34 thoughts on “Why Buying A Home Is Usually A Terrible Investment”

  1. This might be true, but for most Americans, it's the debt that's the killer not the home itself. We should put down 20 percent or higher , which lowers the monthly payment and and interest it costs you. If you have the cash buying almost every time is better.

  2. That's terrible advice. By his logic eating mcdonalds everyday is smarter than drinking a frap everyday or vice versa? You have to live somewhere, so why choose to live and put money in someone else's pocket when you could live and own and likely see a small return on your ownership down the line (at the very least break even)? You will never see rent money again so whatever you "saved' and invested (with an ideal ROI of 2-7%) into the market is offset by the HUGE loss of money via rent.

    PSA: Renters pay property tax, they just dont know that it's included in the rental price.

  3. Do the math on markets that aren't NYC, Orange County (CA), or any other massively inflated urban area, and the result is different. Rent is 100% expense. You never get that money back. Buying a reasonable home that you can afford means that after expenses, you're putting your money into equity. The key is to not over-buy, and to stick to a 15 year mortgage so you can make some headway on equity.

  4. Sounds like when Tyra Banks made the claim you can eat out cheaper than at home. The basic math does not compute– when you rent you're typically paying somebody else's ENTIRE mortgage, not just half of it.

  5. My mortgage is cheeper then renting. Including property taxes insurance and maintenance.
    there are cases where buying it’s better than renting. And there are cases where renting is better than buying.

  6. Ok. I get the message. I used to pay $865,00 CAD every month in a appartement. So multiple this amount by 12 months. I was full of this. Anyway it was so difficult to have services from the owner. I bought a house. Actually there is nothing to do on it. It was just renovated. I just have to pay taxes. I pay less by month than with renting. Since I have nothing to do on the house. I pay my bills and the rest goes to savings and investments. I invest in VTI. The house was built in 1950 for $50 000,00. Now it's almost 4 times the value.

  7. Home ownership is as much about lifestyle as numbers. Renters have less selection in many markets, they can be forced to move based on the landlord's decision to sell and they see no benefit if they decide to make property improvements. Outside of large cities, the best places to live for a family generally don't have a good selection of rental properties.

  8. What a horrible tittle for a video in nj rent an a mortgage can be very similar in price let’s say about 1600-1800 a month to rent a two bedroom about 1800-2200 to buy so not very far off I could invest 2000 a month into a house or have to pay 1600 a month for rent and only invest 400 a month in a index.
    Think about that ine

  9. Maybe this is how Brooklyn works but where I live a 4 bedroom house goes for $1800/month mortgage while a 3 bedroom apartment is the same. Yes, there are maintenance costs but like others have said apartment rent can go up at any time (on average $75-150/year here) your mortgage is consistent.

  10. A lot of you viewers missed the message. It is considered terrible to own a home because that extra money you spent on the home, could have been invested in the stock market. Lets say, 15 years back, you invested that money into Apple, Tesla, Amazon, etc. You would have made a huge return on investment.

Leave a Reply

Your email address will not be published. Required fields are marked *