Under Ugly you forget Reverse Divendends: Rather than it paying you money you have to pay it in the form of maintence in order to keep its value.

Homeownership is quite a burden. There are constant maintenance, replacement, and repair charges that never seem to diminish. The responsibility can be overwhelming.

Does Altucher think that the kindly landlord will absorb all these costs for him without passing them on in the form of increased rent?

Never did get the 'investment' part of home ownership, nor the concept of defining yourself by the home you live in. We purchased a house to live in, not sell. After 35 years, still here and getting tired of maintenance, taxes and neighbors. Not all it's cracked up to be.....

My professor made this statement last week in class and many people disagreed. As he stated his case, I was convinced. Home ownership is not an investment. I definitely feel trapped in my home and I wish I could get out and get a new home with my new husband.

When my mother passed away, my brother took his half of the inheritence, bought a Porsche, and put the rest in the bank. I bought a house. At the time I thought my decision was sound, now I wish I had did what he did. People who try to sell here have their homes on the market almost a year and many of them just take their home off the market or rent it. It is depressing. I hate my neighbors. None of them can move because of the market and I can't move because of the market. I need to paint, recarpet, and make my house look PERFECT, so hopefully it will sell within 8 months next year. Stinks. At least in an apartment you are only stuck a max of 365 days.

Homeownership is not generally a burden if you make sure the deal you get is a good deal for you. Too many people sign off on homeownership without thinking it all the way through. You should not borrow anything over 75-80% of the value of the house that way there is leeway if prices fall which is always a very real scenario regardless of what someone told you during the housing boom. You have to be willing to work both physically and mentally because it takes a lot of work to keep a house/property in good condition. You should plan on staying for a while. If you aren't sold on any of these three things, you should rent. I bought a house in the middle of the recession and since the value of my house has dropped 9% in 18 months. But I left financial wiggle room to retain flexibility should I need it. I still owe much less than the house is worth. I'm not anymore stuck than if I was lcoked into a year of rent. In short, homeownership is only a burden if you make it one.

The article doesn't mention that if you want to rent you have to be flexible in the type of place you want to live. The supply of rentals is not going to be great when the housing market is hot.

It depends. I bought a house about 18 years ago in a neighborhood I could afford. I paid more than the monthly requirement and I paid my house off in 12 years. While paying the mortgage, I did only the minimum of expensive things that needed to be done. Now I have the luxury of doing things that are more expensive and more for quality of life.

At his point, even if I sell my house for what I paid for it (including interest), I'll still be ahead because I didn't have to pay rent and I I got tax breaks.
As with any investment, it's all about how smart you are and what kind of risk you are willing to take.

"Ben" is right. Sure, it's not the deal for everyone, especially if you take on too much debt that will come back to bite you, or you're too lazy/incompetent to take care of needed maintenance. But if you're careful, financially prudent and anywhere near competent with money and up-keep, it's better than flushing your rent money down the crapper.

location plays a huge factor too, if you paid big money for a mcmansion out in the middle of nowhere (i'd say 10 miles from the closest city) you have only yourself to blame.

Here's a very cool way to beat both renting and the burden of owning - a hybrid homeowner/renter: By living in a tiny home on wheels....you get to own your castle at a fraction of a landbased one,.you go where and when you want, and pay a small land rent in the interim....freedom with a future

For most people, a house is by far the largest part of their portfolio and greatly exceeds the 10% of net worth that any other investment should be.

This is the lesson.
If you can house yourself (and family) at this low of a cost then the logic of owning holds. The farther you stray from that 10%? Not so much.

Yet another reason for even deeper cuts in home prices.

" For most people, a house is by far the largest part of their portfolio and greatly exceeds the 10% of net worth that any other investment should be."

True, but... after thirty years, all that rent money paid represents 0% of net worth. Unless your momma lets you live in her basement, rent free, money spent buying a house is not generally available to buy Apple stock.

(And most people don't include the value of the family home as part of their "investments," anyway. At least, they shouldn't.)

Altuchur, also, leaves out inflation. The renter is under constant threat of rising costs, the homeowner with a fixed-rate mortgage, not so much.

I was worrying about selling the house hearing the rumors as u mentioned above. I am confused what is going on in the market these days. Peoples are in confusion these days. A good and helping article here i found. Thank you.
sell my house myself

Just to clarify -- I believe we are still years away from anything approaching normalcy in the housing market.

And, as I explained in that post: "There are lots of reasons to choose between Owning and Renting — it is a personal life choice — but since you have to live somewhere, its simple math to determine what the price differences are. Are the marginal cost differences worth the perceived advantages? That is your calculus."

As a long term real estate investor, I have one plea- everyone, please keep renting. My kids need a college fund, and you are paying it. Buy and hold, 15 year notes, retire at 48. The daily value of my holdings arent relevant, the rents arent dropping. Foregoing cash now for cash flow in retirement.

Another dirty little secret that no one seems to remember. The State, not you really owns your home, you only rent. The rent is better known as property tax, and while you may pay off your mortgage you never get rid of the taxes. And, if you don't pay, you will soon be out on the street.

It is only government subsidized mortgage financing and government created inflation, that keeps buying a home from being no better an investment than buying a car.

"Having a warm home that looks good and works well, and that you and your family and friends enjoy must be one of the most worthwhile things in life . . ." --Terence Conran.