Wednesday, January 06, 2010

The case for renting

James Altucher argues in favor of renting.


  1. Yup, renting makes more sense than commonly believed. Pay rent is hardly 'throwing money away'.

    The WSJ had an article a couple of years ago detailing the costs and benefits. At very, very best it was a break even to own if you consider inflation.

    I own, but I pay cash and really value having acres around me. Borrowing to buy -- not the road to wealth.

    Has anyone heard from Lance?

  2. but but but....there are two or three city block called "immunozone".

  3. I have never understood the argument against renting.

    My dad always said that you were throwing money away. But I wasn't. Someone was providing me a place to live and I paid them rent in exchange. Not everyone can or should buy. Sometimes life situations mean it doesn't make financial sense or practical sense.

    Sure you aren't building equity, but is equity the main reason to buy a house?

  4. Unless you buy a home outright you are simply renting money. Paying interest on money that is not yours, it is the banks. This is the only investment in the average joe's life wear they use leverage. ie. putting 5-10% down on in asset that can either go up or down in price. If it goes up, whoopee, you could possibly make lots and lots of money if you sell it(to rent). But if it goes down, your 5-10% downpayment gets wiped out quickly and now you are underwater.

    I have been renting for the past 2, going on 3 years. In the time that I have paid 60K in rent the house price has gone down 160K, we have had our water heater replaced, the stove replaced, the gutters replaced, the back stairs replaced, and now the attic ceiling is starting to fall down.

    Even with the 160K drop it would still cost me more than 2K more per month to own versus rent and then I am invested in the area, have to worry about the city taxes, the schools, my job, etc.

    All and all I just can't see the pros of owning a home right now. if you can buy it outright and it isn't a big deal for you to let go of that money then so be it but for normal people it just doesn't make sense.

  5. How convenient that the media wants us to rent instead of own, given that the UN's Agenda 21 is very specific in its plan to get rid of private property rights, worldwide -- in order to "save" the environment from humans. Look up "Smart Growth" as it relates to the UN's Agenda 21, which is backed by 190+ countries including the USA. There's a reason you don't see this information covered in the corporate-owned mainstream press.

  6. "Has anyone heard from Lance?"

    Oh, I check in from time to time. I don't really have much to comment about. I'm glad to see that the Armaghedon that was predicted would happen everywhere (including DC, Arlington, etc.) never came to be, and even gladder to see that most bubble heads threw in the towel eventually and became homeowners ... maybe realizing that a home is a place to be lived in and not something to gamble with. Good luck all.