Why Buying a Home is Evil

This guy is hilarious, don't buy a home, live a happy stressless life. BUT HE OWNES A HOUSE!!! He's telling people not to buy a home when the market is down and prices good, meanwhile he owns a home himself, and he rents it out as well which most likely means that he ownes more then one property. What kind of advice is that? He's full of it.
I think hat if you can afford a house you should most definietly buy one, for one it's an investment that will increase in value (in 1996 fall my parents bought a house for $140k, they sold it in 2000 for almost $200k (had to move), now that house is valued at almost 500k!) Plus your bills such as water, electricity, home isnurance, property taxes etc., will be less then paying your monthly $600 or so fees in a condominium every month. Let's not forget that condominium fees increase every year and sooner or later you'll find yourself owning a unit where it is going to be more expensive then rent in monthly condo fees, and noone will want to buy it. Not to mention all the restrictions that are in condominiums, like no pets, or restricted, restricted number of people that can live there,..etc.
When you pay rent you might as well burn that money each month, also we all know what living is like with neighbours on each side, above and under you. If you want a decent place to live you need to spend over $1000 a month (I live in Toronto), unless you want to move into a building where theres a lot of minorities and some don't work, so you get to pay the rent (around $900 or so) and enjoy all that comes from living in a place like that, I know what I'm saying I have lived in those places, and it's hell.
Personally I will buy a house soon, I am watching prices very closely, and I can't wait to own a piece of land :o)
So this expert can keep his stupid misleading advice to himself, if it was such a bad thing I doubt he'd own a house himself, which he does. He ownes at least one property, and he rents at least one too. You use your logic. Like my English teacher always said 'consider the source' of where you get information from, and think for yourself if the information is biased, or misleading on purpose.
Good day.

Reply

While I own a home currently and have bought and sold five houses previously, I do think Mr. Altucher has some valid points regarding his theory that renting is a better investment than buying a house.
1) Renting gives you freedom of mobility if you choose to travel or move for employment. People often sell, and then rent for months or years while waiting for the right time to buy.
2) Much lower ongoing costs are incurred with renting as Mr. Alchuter points out.
3) If a couple has $40,000 and invests this money with the assistance of a financial planner, they can see much higher return on this money in 10, 20, 30 years than in a soft housing market.

On the other hand, I have rented in Vancouver and there are real problems with noise and disruption when in an apartment or detached house with others. Also, security is not present with renting. For example, a person can be told that the house they have rented for several years, and that they have worked on to add considerable value, is being placed on the market and they have two months to move out.

As always, the context of your family needs and current financial and employment siuation are important factors when making any large investment.

Reply

Renting for life gives you ZERO security. Take my grandparents, rented their whole lives, spent well over 60,000 on their rental. Landlord decided to sell the house in order to get the equity from it when times were good, leaving my grandparents HOMELESS with ZERO equity money to fall back on. As opposed to being the home owners walking away with 50K + in their pockets to put towards their retirement. My Mom and Dad bought their house for 52,000 raised their kids, sold the house for 360,000. And this guy doesnt think owning a house is a good investment?
At this moment in time, the market blows. It happens. When money is good, you can INSTANTLY earn yourself 30, 40,60, 100 GRAND in cold hard cash. How else can you pull this off? Invest your money in the dirt because they are not making any more of it. This guy is a retard. Coming from a proud new home owner that INSTANTLY gained 20,000 in equity upon possession as stated by the appraisal.
You can find stress in any part of your day, think of my grandparents (in law) who found themselves homeless at 65 years of age because they thought renting for life was a good idea. How stressed were they.

Reply

This guy is an idiot. I bought 5 house when times were good. I owned two in the US and 3 in Canada I sold one in the US to payoff the other. And now I going to sell off the other two in Canada to pay off my home. I will have no mortgage on either of them.I did this in ten years during the 7 years upswing and 3 years downturn in the market. Other people paid my mortgages for me while my investments grew. How else could I have raised my family and acquire nearly $400K in that time investing in the market.

Reply

Renting a house or apartment is at best a short term fix. Buying a home and paying off your own mortgage is so much better than paying off someone else's. And that is what you do when you rent.
I have a mortgage free home and it only took 30 years. Definately a long term investment.I bought for $22,500.00 and the property is now valued at close to 80,000.00.Almost a 400% increase in value.And in the long run the value goes up.
Better returns than the stock market. Just have to give it the time necessary.

Reply

I have not even looked at the video - the title was enough for me. I am a "single" woman living in the Lower Mainland of Vancouver who for the past 40 years has invested in real estate. I retired early and still own real estate investments, one of which has just completely paid for another one. Markets fluctuate - but - other investments (which I also have) have not come close to the gains made in savvy real estate investment. It is the ONLY vehicle that will keep pace with inflation - key word - "only". Costs of owning are fractional when compared to positive gains. For instance I bought an old house for $312,000, fixed it up with little money, sold it six years later for $660,000. More than double what I paid for it. Since it was a principle residence - no capital gains were paid on it - the money clinked into the bank to pay for the next investment.

The guys who give this kind of information are "out to lunch" - hopefully, those with common sense will come forward like me and dispute this theory - at the end of the day if you listen to it - you will end up with nothing - now there's stress for you!

Reply

Are u kidding me,I made more money buying houses living in them for a year doing a little reno's and sold,made more money in 2 houses than I did investing for the past 30 years. The only ones who make money investing are the people who use your money.

Reply

Is this gentleman serious? This fellow needs a reality check. I am 48 yrs old and owned real estate since the age of 22. I can say that over the past 26 yrs, no other investment has given me a better return than real estate. My initial $20000 investment has grown to over $500000. Get yourself a good real estate agent and make that first move to buy a home and becoming financially independent sooner than later. Money in the bank has no real value and the stock markets will always has a roller coaster pattern with no garanteed return. That's my advise...

Reply

In response to an above comment, you can use the equity in your home for other investments, such as more real estate. Banks in Canada will lend money up to 80% on property to those with solid real estate investments. It is unnecessary to sell in this case and frees up the cash. Given that today the interest rates are lower than at any other time in history, it makes sense to utilize this kind of money for investment purposes. If these investments are rental properties, it is possible for 100% of this investment to be serviced without spending a nickel. It can also be used for other things such as personal business. The baby boomers do drive every market. It is correct that they are quickly abandoning larger homes and buying recreational properties. Therefore, today, recreational properties in good locations make sense - and, you can invest in one without selling your home - if you are a good risk and own property.

Reply

I have rented and it sucks.
I have been foreclosed on and it sucks.
I have a mortgage free home and it is the greatest.
The advantages more than overcome any small disadvantages.
Anyone who says it is better to rent must have failed math.

Reply