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Why Owning a House is Financial Suicide
News.Com (Australia) ^ | November 13, 2015 08:32 GMT | James Altucher

Posted on 11/12/2015 11:23:52 PM PST by Up Yours Marxists

OWNING your own house is as much the Australian dream as the American dream, and it's one that feels increasingly out of reach for many.

But when one user on Quora pondered whether it was ultimately better to rent or own your own home, blogger and investor James Altucher penned this highly controversial response:

I am sick of me writing about this. Do you ever get sick of yourself? I am sick of me.

But every day I see more propaganda about the American Dream of owning the home.

I see codewords a $15 trillion dollar industry uses to hypnotise its religious adherents to BELIEVE.

Lay down your money, your hard work, your lives and loves and debt, and BELIEVE!

But I will qualify: if someone wants to own a home, own one. There should never be a judgment. I'm the last to judge. I've owned two homes. And lost two homes.

If were to write an autobiography called: "My life - 10 miserable moments" owning a home would be two of them.




(Excerpt) Read more at news.com.au ...


TOPICS: Business/Economy; Society
KEYWORDS: americandream; buyhome; finance; financial; home; homebubble; homeownership; housing; housingbubble; housingshortage; interest; interestrates; investment; investmentproperty; investments; rent; rental
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I don't necessarily agree with the author on this but it does lead to a good discussion. Thoughts?
1 posted on 11/12/2015 11:23:52 PM PST by Up Yours Marxists
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To: Up Yours Marxists

Your home is the most precious possession you could possibly achieve in your life. Destroy this and you destroy the middle class and the American Dream. Being secure in your own home IS the standard...is the American Dream.


2 posted on 11/12/2015 11:32:04 PM PST by antceecee (Bless us Lord, forgive us our sins and bring us to everlasting life.)
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To: Up Yours Marxists

I think you are always better off with a hard asset than not, whatever that asset is. If you own it, you have lower costs over time than renting it. It can also be converted to cash if need be. Cash is only good in stable economies. If the US economy goes Weimer, it wont matter how much cash you have as it will be essentially worthless.

The only exception I make is probably a vehicle. If you can get away without one, you’re probably better off financially.


3 posted on 11/12/2015 11:36:14 PM PST by Jonty30 (What Islam and secularism have in common is that they are both death cults)
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To: Up Yours Marxists

Investors are now trying to interest retirees to buy several properties and rent them out.

Can’t have the public OWNING their homes when people have investment opportunities they are trying to make monthly income off of.


4 posted on 11/12/2015 11:38:10 PM PST by a fool in paradise (The goal of Socialism is Communism. Marx and Lenin were in agreement on this.)
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To: Up Yours Marxists

Totally makes sense to me.


5 posted on 11/12/2015 11:41:29 PM PST by Maceman
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To: Up Yours Marxists

Renting means someone still owns the property. Who does this person want owning it, government?


6 posted on 11/12/2015 11:43:23 PM PST by CodeToad (Stupid kills, but not nearly enough!)
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To: Up Yours Marxists
I am happy I own my home. Free and clear of a mortgage now. Re-financed to get better terms, paid it off as quickly as possible to reduce the interest hit. Over the years I've seen rents continually go up, while my property tax and upkeep on the house are low and stable. Now it's a nice nest egg of equity.

Several decades ago, a couple of my nutty sisters tried to convince my elderly mom to sell her house and just rent an apartment. I told my mom that was nuts, because even if she could afford the rent then, it would continually go up beyond her ability to pay. Years later, the house sold for many times what it was worth back then. Renting is okay while you're saving up for a down payment on a home, other than that it's money down the drain.

7 posted on 11/12/2015 11:47:10 PM PST by roadcat
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To: antceecee
"Your home is the most precious possession you could possibly achieve in your life. Destroy this and you destroy the middle class and the American Dream."


8 posted on 11/12/2015 11:53:35 PM PST by clearcarbon
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To: Up Yours Marxists

A house should be used as a home by its builder and owner, and houses do degrade and physically depreciate. There is something pathological about an economy that promotes disproportionate inflation of real property prices without real and substantial improvements. It’s only another fraud for getting money without doing real work.


9 posted on 11/13/2015 12:01:56 AM PST by familyop ("Dry land is not just our destination, it is our destiny!" --"Deacon," "Waterworld")
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To: Up Yours Marxists

I do own a house. But it in no way represents any form of “American Dream” to me. It is a house.

In my thought if a house is the “American Dream” and I achieve it at age 25 or 30 or 35 then I am going to have a pretty bored life for the next 30 - 40 years.

The “American Dream” is freedom. Freedom to choose, freedom to live, to pursue and achieve whatever it is I desire......


10 posted on 11/13/2015 12:03:15 AM PST by JParris
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To: CodeToad

I guess these folks could always buy into a trailer park.


11 posted on 11/13/2015 12:04:58 AM PST by A CA Guy ( God Bless America, God Bless and keep safe our fighting men and women.e)
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To: Up Yours Marxists
The author speaks of paying rent versus paying a mortgage, which is not, as he points out, "owning a home" but paying the bank who does so. While that is definitely the norm it isn't the entire picture. The mortgage has an end, renting does not. That end is when the house is paid off and the owner comes into full possession. That, and not a permanent obligation to either landlord or bank, is the "American dream".

There is a certain permanence to that, a certain commitment, and if you aren't lucky enough to find a place that you're perfectly happy to contemplate being removed from wearing a toe tag, then perhaps the freedom of impermanence is more attractive. But if you happen to be determined and lucky enough to have what I do, that cabin in the forest on a lake overlooking a mountain, paid for by a lifetime of labor and with deed in hand, beholden to no one but a grasping state for taxes it routinely misspends...that's another issue...if you are in that position there is nothing in the world like owning a home. It's called a "dream" for a reason.

The author has the freedom to depart and put down new roots. I have the freedom to do what I wish with what is mine. Both have strictures preventing them from being labeled true "freedom" but I think I prefer the latter. If the author prefers the former, God bless him.

12 posted on 11/13/2015 12:13:56 AM PST by Billthedrill
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To: familyop

Live within ones means, control as much of your environment as possible, harden your assets, be self sufficient, have reserves and alternatives and the ability to barter for basic needs of food, water, shelter, health, security and transportation. Preclude, foresee and mitigate the damage from as many natural, federal, commercial, public and private threats possible your life ......

Liberty has a price. The cost is up to the individual .

Stay Safe !


13 posted on 11/13/2015 12:16:41 AM PST by Squantos ( Be polite, be professional, but have a plan to kill everyone you meet ...)
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To: Up Yours Marxists

Owning a home is losing its appeal for me that’s for sure, in part because you could lose it through asset forfeiture just because some crooked bureaucratic government thief or vindictive leftist politician decides to snap his fingers and take it. No court need be involved.

There just isn’t as much financial security in owning a home as there used to be.

At least in the old days, if the market were falling, you could sell it and get out.

Now you could lose it in the blink of an eye.

Of course, you could always lose a house in the blink of an eye in the past as well (fire, flood, tornado, etc.), but now such loss is significantly more likely, what with every thieving bureaucrat in the country eyeing it as though it were some tasty morsel just waiting to be snapped up. And don’t think it isn’t going to get worse. It’s BEEN getting worse.

Some of us are getting the impression that you might as well just sit on a big bag of money on some empty lot somewhere.


14 posted on 11/13/2015 12:26:24 AM PST by LibWhacker
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To: Up Yours Marxists

Maybe I should just get a bunker instead.


15 posted on 11/13/2015 12:30:01 AM PST by Politicalkiddo ("We have too many high sounding words, and too few actions that correspond with them." Abigail Adams)
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To: Up Yours Marxists

Renting may seem appealing until you have a place you really enjoy living in and the landlord says you have to leave.


16 posted on 11/13/2015 12:33:55 AM PST by fso301
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To: fso301

My dream is to one day be a home owner of a small home with a large yard to grow a garden. Right now I’m renting and your right. Renting has its convenience like maintaining landscape but are lousy to fix things around the complex. They rather wait until you move out. Also rent keeps getting raised might as well use the amount on a mortgage toward a home than renting.


17 posted on 11/13/2015 12:47:45 AM PST by Patriot Babe
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To: Up Yours Marxists

If the author means owning a home with a mortgage I can agree with him.Even though we truly never really own our home,even after the mortgage is burned.Because local property taxes will eat you alive especially if you have an irresponsible liberal government.


18 posted on 11/13/2015 12:57:48 AM PST by puppypusher ( The World is going to the dogs.)
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To: puppypusher; All
If the author means owning a home with a mortgage I can agree with him.Even though we truly never really own our home,even after the mortgage is burned.Because local property taxes will eat you alive especially if you have an irresponsible liberal government.

THIS.

19 posted on 11/13/2015 1:06:44 AM PST by TADSLOS (A Ted Cruz Happy Warrior! GO TED!)
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To: Up Yours Marxists
Home ownership is so passe for the 21st century man (according to the government' Agenda 21 guidelines). Why would you want to own a home when you can rent one of these from the government? No need for nice furniture or belongings. They're stackable too so you can ask for a cup of sugar by simply sticking your hand out of your hatch and asking your neighbor:


20 posted on 11/13/2015 1:17:22 AM PST by jsanders2001
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