Why Are You Throwing Your Money Away Renting?

By -
Show this to every idiot who has ever said that to you:

"The CEPR also found that people who were renting homes in 2004 will have more wealth in 2009 than those who were owners. That's true for all five wealth groups the study analyzed, from the poorest to the wealthiest."

Comments

  1. Woody9:22 AM

    "'Real estate has to be priced like any other goods,' he said. "Home prices have to reflect the economic reality.'"

    If any market is inefficient, it's residential real estate. Has residential real estate ever been priced like "any other good?"

    I rented to years during a market upswing, and often heard that I was throwing my money away by renting. My reply was that I was getting something for my money: freedom. That my landlord didn't terminate my lease for a decade was lucky.

    I know from experience that apartment shopping in Manhattan is expensive, at least in terms of time and heartbreak. Moving has heavy direct expenses, and movers sure accelerate the depreciation of your furniture.

    So renting has outperformed owning for the past five years. I'm betting that in healthy markets (ie, places where people actually want to live, see http://pewsocialtrends.org/assets/pdf/Community-Satisfaction.pdf) owning will outperform over the next five.

    ReplyDelete
  2. Woody9:23 AM

    "'Real estate has to be priced like any other goods,' he said. "Home prices have to reflect the economic reality.'"

    If any market is inefficient, it's residential real estate. Has residential real estate ever been priced like "any other good?"

    I rented to years during a market upswing, and often heard that I was throwing my money away by renting. My reply was that I was getting something for my money: freedom. That my landlord didn't terminate my lease for a decade was lucky.

    I know from experience that apartment shopping in Manhattan is expensive, at least in terms of time and heartbreak. Moving has heavy direct expenses, and movers sure accelerate the depreciation of your furniture.

    So renting has outperformed owning for the past five years. I'm betting that in healthy markets (ie, places where people actually want to live, see http://pewsocialtrends.org/assets/pdf/Community-Satisfaction.pdf) owning will outperform over the next five.

    ReplyDelete
  3. Anonymous9:10 AM

    Here's an excellent analysis and tool for comparing renting and buying.

    http://pricedoutforever.com/more-rent-vs-purch.html

    ReplyDelete

Post a Comment

Popular posts from this blog

Libertarians, My Libertarians!

By -
Cruel to be kind means that I love you . Because, while I think you are mistaken, your hearts are in the right place -- yes, even you, Silas --  unlike some people . This Breitbart fellow (discussed in the link above), by all appearances, deliberately doctored a video of Shirley Sherrod to make her remarks appear virulently racist, when they had, in fact, the opposite import. I heard that at a recent Austrian conference, some folks were talking about "Callahan's conservative turn." While that description is not entirely inaccurate, I must say that a lot of these people who today call themselves conservative give me the heebie-jeebies.
Read more

"Pre-Galilean" Foolishness

By -
 I am currently reading The Master and His Emissary , which appears to be an excellent book. ("Appears" because I don't know the neuroscience literature well enough to say for sure, yet.) But then on page 186 I find: "Asking cognition, however, to give a perspective on the relationship between cognition and affect is like asking astronomer in the pre-Galilean geocentric world, whether, in his opinion, the sun moves round the earth of the earth around the sun. To ask a question alone would be enough to label one as mad." OK, this is garbage. First of all, it should be pre-Copernican, not pre-Galilean. But much worse is that people have seriously been considering heliocentrism for many centuries before Copernicus. Aristarchus had proposed a heliocentric model in the 4th-century BC. It had generally been considered wrong, but not "mad." (And wrong for scientific reasons: Why, for instance, did we not observe stellar parallax?) And when Copernicus propose
Read more