Most of you think I'm crazy. I don't care. The financial evidence does not stack up at all in favour of buying a house. Sure, you can buy a house, but it is not a home. A house becomes a home not due to the financials or ownership piece, but due to emotional decisions associated with the purchase.
But don't take it from me, listen to the experts:
- James Altucher has written about this many times before.
- Steve McKnight, when he had invested in 50 properties, still rented his own home. I wonder if he knows his old website still tells people this.
- Ramit Sethi has written circa 20 articles showing the financial idiocy of purchasing a home.
- Scott Pape, the barefoot investor, acknowledges that buying a home is a poor financial decision. Yet after conceding that fact, he believes the emotional reasons are worth the poor results (which the article calculates as $900,000 difference if you buy instead of renting).
- Phil Ruthven, Chairman of IBISworld, did the math on renting vs buying and decided to rent.
Try to read all of the above without a bias. Then ask yourself, 'Do I desire to purchase / Did I purchase a house for financial or emotional reasons?'