The Real Estate Debate

Today's post is a bit of a rant, but I have to get this off my chest. People spend money on some of the dumbest things to me. Rather than spend money on investments, they spend money on cars, clothes and a bunch of other things that has no real value. People have become so materialistic and so focused on looking like they have money rather than doing the things to actually have money. I have a term that I use to describe people like that "Hood Rich". Now I am not saying that people are hood or anything like that. It actually doesn't pertain to were you live, it pertains to your mentality. It's like someone driving a $80k car and living in an apartment. Why? I would rather drive a Toyota Corolla and live in a Mansion than drive a Mercedes and live in a 1 bedroom apartment.  I said all of that to say that people need to spend their money on things that will appreciate (increase in value) not things that are worth less money the moment you buy them. Now I am sure t...

There has been a movement of late where today's young people have decided against buying and have decided to rent. There are some compelling reasons that support this thought process however buying a home is still a better option then renting. There is one truth that there is no way around and that is the fact that you are literally throwing money away by renting. If you are paying $2000 per month to rent and the house you are renting appreciates 10% over the time that you are renting you get absolutely nothing other than the bundle of rights you are entitled to as a tenant. If you are purchasing that same house and paying $2000 per month you are entitled to the 10% appreciation. Now keep in mind that if you are renting you don't have to worry about taking care of the maintenance and home care that you do when you are the homeowner. So although homeownership is great you do have to be careful, buying any home is not the answer. That being said in my opinion you won't fi...