Buying vs Renting a home for building wealth

I spend more money on housing now that I rent, compared to the previous one I owned.

But yeah I could kill my dog, sell most of our stuff and move into a 3bd apartment and have more money to throw into stocks every month. So I get it.

Yea, owning property is a sure fire way to ruin.

my house has almost doubled in value in 6 years. Id say thats a pretty good investment

I always buy in fantastic areas with professionals and great schools. Never had an issue selling or making money. Even during the down turn.

Real Estate is hyperlocal, down to the street in small town USA. In my market this article couldn’t be more inaccurate.

Stock market historically has outperformed real estate market. There are other factors other than ROI to real estate ownership.

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Buying vs Renting a home for building wealth

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There are so many things to consider before making this decision....someone could right a book and still not cover every scenario.

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Rent is pretty high right now.

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Exactly.

Adding on all of the expenses of home ownership, including a budget for upkeep, minus tax breaks, equals to about 100 dollars less for less space and more rules in basically the same exact area (2 blocks away geographically, in a different school district that is orders of magnitude better)

Except for renting, at the end of the month I have nothing to show for it but another bill.

Owning means I built equity in something.

And the article even recognizes that.

OP I get down voted all the time for saying it.

Renting may not be the best option, but owning a home is more expensive than people think. As previous stated we have to account for property tax, maintenance, insurance and repairs,interest, and inflation. It's easy to spend 4K-5k a year on these things and then 5k a year on interest . So when you're $300,000 home sells for 350 7years later, you spent $30k to live in the home. You also have only kept up with inflation, so a $300,000 home in 2009 is worth 349k in 2016

Over the seven years you have paid 42,000 in interest, but also about the same in principal.

Your balance is 258k(300-258) you gross 92k on the sale. You net 20k(92-30k expenses, -42k interest), and when you take in to account of inflation you lost $30k

If you would have put the 50k that you put down on the house in the market and then add 4000 annual additional 10% you would have $140k

This is not something I live by, but I see how it works.

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Renting may not be the best option, but owning a home is more expensive than people think. As previous stated we have to account for property tax, maintenance, insurance and repairs,interest, and inflation. It's easy to spend 4K-5k a year on these things and then 5k a year on interest . So when you're $300,000 home sells for 350 7years later, you spent $30k to live in the home. You also have only kept up with inflation, so a $300,000 home in 2009 is worth 349k in 2016

Over the seven years you have paid 42,000 in interest, but also about the same in principal.

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The issue I have with this is I’ve represented investors for over a decade and don’t have anyone who has not passed along ALL ownership costs plus profit margin along to the tenant. I had one guy get assessed $1000 on a roof in a townhouse in January, so he will up rent $50/mo on his tenant when time to renew lease.

Not saying your situation doesn’t happen, I simply have never seen it in real life.

Sounds like he didn't factor regular maintenance into his original rent price.