Reply to Anyone decide to rent instead of buy to maximize other investments ?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Since 2000, the S&P is up 168% even with 2008-2009; unless you chose the absolute right house/location, most houses in this area are not up 168%, so yeah there is something to be said for investing and not buying a home – not to mention all the $$$ that could’ve been used to buy more shares that instead went to HVAC, new roof, landscaping, renovating the kitchen/whatever else etc.
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You're over-simplifying by not mentioning that, if you bought a house in 2000, you've had a place to live since 2000, and a lot of your monthly housing spending since then has been simply to put equity into your own property, and the tax incentives on mortgage interest.[/quote]

Yup. And as someone who has owned a home since December of 2000 when I was 23yrs old in the DC metro area, here I sit at 40 without a mortgage and 3/4M in equity I have lots a lots of disposable money to put into the market, though I will say that I just invested in some properties in downtown Nashville that are already cash flow positive. I'm taking a break from the stock markets and letting what I have in there just ride.[/quote]

Right except you're putting in money at 40 that PP put in at 23 -- time value of money/time in market would be greater for PP, not you. That being said -- I think for most Americans like 98% of them, home ownership is better because it is "forced" savings and equity building. What PP is saying does work IF you are the type who can pay 2000-3000+ rent AND put in 2000-3000+ into the market every single month (and of course fund a 401k). If you can do that, you are likely of a certain higher income bracket in which case -- go ahead and keep doing that and buy when it's an all cash deal or a small mortgage just for tax breaks or whatever. Reality is most average Americans including the "average" DCUM couple sitting there at 300k has arranged their life in such a way that after the bills are paid, they don't have an extra 3k to throw into stocks month after month; for those -- home ownership is good equity building that guarantees that in 30 yrs or 15 yrs your housing cost is gone and then you have savings from that point on.[/quote]

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