The "renting is better than owning" argument is normally used to counter someone who tries to BS about real estate being a great financial investment. It's a counter-argument that demonstrates how much money you sink into the overall house (taxes, maintenance, opportunity cost) that most people don't factor in, how illiquid real estate is, and how expensive it is to sell compared to many other investments.mazerbeaner wrote: ↑Nov 20th, 2018 11:48 amThis is why I just laugh when someone tries to tell me renting is better than owning. They say they save a few hundred a month they can invest. Ignoring the fact that within a few years you will probably pay more in rent than owning there is also the issue of equity. By owning I gain $2000 a month in mortgage paydown, that adds up real fast and can be used if needed. Oh and the amount going to principal increases every single month. It just gives you so many more options and access to cheap credit.
It's not meant to convince someone who wants to own for personal, non-investment reasons that they shouldn't buy a house. People usually buy houses for personal, non-investment reasons.
People should STFU about their house being a great investment because:
- That's often not the reason you bought it and you only talk about it as an investment when it happens to have been a great investment.
- Your gains and losses are generally the same as everyone else's who has real estate in your area.
- Most people want to buy a house. Your main contribution was that you existed before someone else did. That's nothing to be proud of or take credit for.
Also, there are certain types of people that should not buy real estate because it is not a good investment in some cases:
- Unstable employment, particularly in a remote area
- Do not expect to stay in one place for long to offset the high costs of moving
- If you are one of those people that has a history of relocating to a different region regularly