{"id":9,"date":"2007-04-18T06:38:16","date_gmt":"2007-04-18T14:38:16","guid":{"rendered":"http:\/\/pricedoutforever.com\/blog\/2007\/04\/18\/financially-speaking-renting-beats-buying\/"},"modified":"2008-08-26T13:54:52","modified_gmt":"2008-08-26T21:54:52","slug":"financially-speaking-renting-beats-buying","status":"publish","type":"post","link":"https:\/\/pricedoutforever.com\/blog\/2007\/04\/18\/financially-speaking-renting-beats-buying\/","title":{"rendered":"Financially Speaking, Renting Beats Buying"},"content":{"rendered":"

Maybe I’m going overboard on this whole renting vs. purchasing thing, but here’s yet another article that hopefully will help drive the point home: Renting Makes More Financial Sense Than Homeownership<\/a><\/p>\n

I HAVE SOMETHING un-American to confess: I rent an apartment, despite having enough money to buy a house. I plan to keep renting for as long as I can. I’m not just holding out for better prices. Renting will make me richer.<\/p>\n

I normally write about stocks for SmartMoney.com, but the boss asked me to explain to readers my reason for renting. Here goes: Businesses are great investments while houses are poor ones, so I’d rather rent the latter and own the former.<\/p>\n

Shares of businesses return 7% a year over long time periods. I’m subtracting for inflation…<\/p>\n

The average real return for houses over long time periods might surprise you. It’s zero.
\n…
\n“You say houses return zero. But I’ve made a fortune on my house in recent years.”<\/p>\n

I’m referring to inflation-adjusted returns over long time periods, absent external boosts to demand. You’re referring to gross returns over a short time period that combined lax borrowing standards and ultra-low interest rates.<\/p><\/blockquote>\n

Remember, I’m not saying “don’t ever buy a house.” I’m saying “don’t ever buy a house as a means to generate a profit.” I’m nowhere near as hard core as this guy, in that I would probably have already bought a house by now if prices were sane<\/i>. But as long as things are this far out of whack, the financial benefits of renting far outweigh the psychological benefits of purchasing (for me).<\/p>\n","protected":false},"excerpt":{"rendered":"

Maybe I’m going overboard on this whole renting vs. purchasing thing, but here’s yet another article that hopefully will help drive the point home: Renting Makes More Financial Sense Than Homeownership I HAVE SOMETHING un-American to confess: I rent an apartment, despite having enough money to buy a house. I plan to keep renting for […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-9","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/pricedoutforever.com\/blog\/wp-json\/wp\/v2\/posts\/9","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/pricedoutforever.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/pricedoutforever.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/pricedoutforever.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/pricedoutforever.com\/blog\/wp-json\/wp\/v2\/comments?post=9"}],"version-history":[{"count":1,"href":"https:\/\/pricedoutforever.com\/blog\/wp-json\/wp\/v2\/posts\/9\/revisions"}],"predecessor-version":[{"id":19,"href":"https:\/\/pricedoutforever.com\/blog\/wp-json\/wp\/v2\/posts\/9\/revisions\/19"}],"wp:attachment":[{"href":"https:\/\/pricedoutforever.com\/blog\/wp-json\/wp\/v2\/media?parent=9"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/pricedoutforever.com\/blog\/wp-json\/wp\/v2\/categories?post=9"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/pricedoutforever.com\/blog\/wp-json\/wp\/v2\/tags?post=9"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}