Buying a house is one of the biggest purchases of your life

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I Will Teach You To Be Rich

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People are taught that owning a home is better than renting because renting is “throwing money away”

To see if it's the right move for your Rich Life, there’s a lot to consider:

- Do you live in a HCOL city?
- Do you want flexibility?
- Are you prepared to pay for maintenance?

Download my guide to learn if buying a house is the right decision for you: iwt.com/houseguide-youtube

ramitsethi

After watching Diary of a CEO recently featuring Ramit I can’t get enough of his content.
I’m now reading his book and I can honestly say it’s superb. He has a great way of explaining and resonating with his audience and I only wish I’d discovered him sooner.

bobba

So freaking true. I own a house which is a vociferous money pit plus, I don’t like it nor the being tied to it aspects. I aim to be free and lighter. Thanks for being enlightening.!!

karinkent

Sold my house 🏡 and now rent for a higher quality of life. Also, saved me so much money. Who knew??

joannvalentin-alvarez

I think it really depends on the market. He’s specifically talking about the locations he’s been in. I’m so glad my parents a bought a house in Toronto, Canada when they did… the amount of house appreciation in the last 10 years has been 137%. No other investment is increasing as much as that one. My income definitely couldn’t catch up to the amount that housing was increasing each year. If you’re planning to stay in the city I say back in that day, my parents made the best decision in putting money into real estate when they did and creating generational wealth. Even condos with little maintenance is more than double the price now. They bought it maybe 5-10 years ago.

Jayl__

ONLY time this doesn't work out is in Canada right now!!
House prices are rising crazy. Talking 20-30% in a year. Rents are also rising at the same rate. If you owned beforehand, great.

If not... Wait this bubble out with roommates and smaller houses.

mr_mike

In a HCOL I would rent. But I would also try to earn enough where I'm renting from high-quality landlords that actually fix things promptly when you call them 😂 I think this is so controversial because most people don't have as much income as Ramit, can't spend as much on housing, can't be as picky, and therefore have to deal with much lower quality landlords.

Of course, we just need more housing built and more co-op apartments, but that's another topic.

vulpixelful

But this just looks at the costs but what about the return?

Mozspeare

Rents generally increase over time. Fixed rate mortgages don’t, and it’s not unreasonable to pay off a mortgage in 15 years or less. Weigh this against a lifetime of rent payments, and buying wins by a huge margin even with maintenance costs.

cll

People don’t wanna hear the truth about other people situation. Everyone life is different and we live in different places. Do what’s best for you we’re only here temporarily.

lynnettgerald

You don’t mention the gain in equity over time. Over the years, the owner will pay down the mortgage and the value of the home will increase, so there is normally a nice profit when you sell the home.

michaelgrantham

Flexibility - Locked into lease you have to pay out the ass to break, if they'll even let you. Repairs - Hope they make the repair... like rn my ac is running 24/7 and doesnt cool at night. Will be a huge electric bill. It's doubtful they'll repair and cant even use my computer because the temp inside will reach 83 degrees lol.

Had to pay out the ass to move from another unit due to loud neighbors. Another complex bait and switched us. And these aren't cheap apartments.

I think renting could be better in ideal circumstances but there is so much out of your control and you don't know what you're getting until you're locked in a one year lease.

TheMrKlassy

Your phantom costs are exaggerated. Homeownership comes with fixed costs where rent is constantly rising. You constantly bake in utilities for rentals but not for homeowners even though the majority of rentals the utilities are separate. You throw property taxes and home insurance against owning, even though you're paying the property tax and home insurance in your rent. You have a really weird hatred for Homeownership for some reason.

aaront

That last one is the worst issue with buying a house instead of renting is any repairs needed come out of YOUR pocket. Dryer went out? It’s you that has to pay. Plumbing issues? Oops there goes $10k. So much for “cash flow”.

TechOutAdam