Is Buying a Home a Bad Investment?

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If you are contemplating buying a home, you should know and review the pros and cons of the investment you are about to make—as you would any investment decision—before signing on the dotted line.

In this video, Andrew shares his thoughts on buying a home.

00:00 Start
1:00 Investing in Real Estate
3:32 CNBC
5:46 Buying a Home is a Terrible Idea
7:59 Living in Phoenix Arizona
12:00 Taxes in California
12:38 The Ultimate Guide to Finding Your Best Place to Live
16:48 Living in Malaysia

Andrew Henderson and the Nomad Capitalist team are the world's most sought-after experts on legal offshore tax strategies, investment immigration, and global citizenship. We work exclusively with seven- and eight-figure entrepreneurs and investors who want to "go where they're treated best".

Andrew has started offshore companies, opened dozens of offshore bank accounts, obtained multiple second passports, and purchased real estate on four continents. He has spent the last 12 years studying and personally implementing the Nomad Capitalist lifestyle.

Our growing team of researchers, strategies, and implementers add to our ever-growing knowledge base of the best options available. In addition, we've spent years studying the behavior of hundreds of clients in order to help people get the results they want faster and with less effort.

DISCLAIMER: The information in this video should not be considered tax, financial, investment, or any kind of professional advice. Only a professional diagnosis of your specific situation can determine which strategies are appropriate for your needs. Nomad Capitalist can and does not provide advice unless/until engaged by you.

[pazsugarspice]

I totally agree that the décor you surround yourself makes you perform better (or worse). Owning a property is security, freedom, and lifestyle.

[geozantrox]

In italy home prices have been decreasing for decades, except in big city centres, and mortgages have become impossible to get. My case was particularly difficult even with a relatively high income.
Even then, italy has the highest percentage of owned firts homes. It is in our culture and is where most of italy's huge private savings are stored. One of the main goals in life is to buy your first home and to leave one for your kids. Any investiment can go up and donw, but you can still live in your home

[Gibberish]

When I bought a house in a small coastal town here in The Netherlands 4 years ago, I was a bit worried the value would probably stay the same or even decrease over time considering nobody was really buying houses in this town and the house prices were only really increasing in the cities. It kind of seemed crazy at the time. Oh boy! How wrong I was! The house is now worth a million euros and I bought it for 575k! Perhaps it would be a good time to sell it now, but I won’t because I really like it.

[sgkenswil]

Agree. When you're a successful entrepreneur, lifestyle becomes more important.

[matthawksworth]

Couldn't agree more, when you have your place setup for you then you can actually work.

[HopelessMillennial]

Owning a home isnt worth it, (As a previous homeowner) - You basically dont own it if you live in the U.S Due to skyrocketing property taxes and the outrageous amounts of insurance you need on it. In my opinion it is much more worth it to be free and be able to move where you like and when you like even if you pay a small premium for it. If the cooling system goes out on your rental its an inconvience but you dont pay anything for it as its on the landlord.

[MartinDellaNina]

He is one of the few people I don't have a need to put on 2x speed

[CurtisMoe]

Depends on the person and the home. A home that is paid off is money in your pocket (usually). Housing and transportation are a persons biggest costs. Eliminating the payment for one or both of those reduces your cost of living, which lowers the amount of cashflow you need to build to cover it. Needing less cashflow than you thought likely means you will hit FI sooner.

[Michael-]

Owning where you live, mentally, works for me. Forget leverage, opportunity cost etc. Own all of them. It's one less stress in my life.

[gryphonfellowship]

This guy is great! Just follow him and watch as much videos you can from him. They are all lessons for life!!!

[andykeith]

I recently created a spreadsheet modelling 3 scenarios: renting, buying outright and buying with a mortgage, including maintenance costs for owning a home, property taxes, rental deposits, bills, etc with as much detail as possible, and for the rent scenario I invested the money saved on buying a home in stocks. The best option was owning with a mortgage, I think because of the leverage you get (if the house appreciates by 5% per year you get all of the gain minus the mortgage which gradually shrinks over time). Second best was buying outright, and a fairly close 3rd was renting. I assumed average stock and property increases of 7% and 5% respectively which can of course vary a lot depending on your location and the time you invest.

[kawaiiduck]

According to 1 of the credit bureau. 75% of Americans die still owing money on their mortgage, to the tune of 50 grand. Before Freddy and Fannie, house cost was 150% of yearly wage, mortgages were only 5 years, because banks don’t like to go out further than 5 years.

[soliel]

It's nice hearing you share your personal preferences.

[finalascent]

Lucky timing for me. I bought a cooperative apartment 24 years ago outside of a major US City. Condos and single family homes were what people wanted back then. So glad I bought it - all paid off now, and even with increases in the monthly "maintenance" (common charges plus municipal and state property tax bundled in), I'm paying about 40% of what the market rent rate would be for my unit.

[GwendolyndeAshboroughLady]

I prefer a comfortable accomodation in several Countries to satisfy Residency requirements and my lifestyle.

[SergeLabelle]

I am 60 years old, traveled the world since I am 19 (65 countries), in tip-top shape, speak 4 languages, love my business and every love partners I had. I have never bought a property or invested in stocks. I have invested in my life experiences and most of all, my exciting international agency in sports and entertainment, and about to launch a great product. Never been married, had no children, and didn't lose time and money with university "education". Coming from a poor background, entrepreneurship was my way to freedom and living a thrilling life. Never, ever had debt. Retirement? This word doesn't exist in my vocabulary since I love every minute of my business. P.S. Oh and one day, all that will be over, so live your life to the fullest, you won't bring it with you when the curtain drops.

[markzschech]

Some great points made! Love how well you prepare your videos on a topic.

[LisaCulton]

Nowadays, I think owning a home is bad as an "investment". It's OK to own a home as a primary residence, but that's about it.

[taraelizabethlivinglife]

I love hearing your perspective on this. Thank you for sharing.

[nickeb]

Well, this is completely dependent on type of real estate and location. But in general it is not hard to find objects where the potential loss is low but reward can be great, but this also means you might have to pass on your dream house and make a compromise between what you would prefer and what is a good investment. I have bought and sold two times and each time doubled what I put in.