House owners VS renters

[singe89]

Originally Posted by MrEleven

Yes i watched his interview on vladtv then a week later grant cardone did the same topic on his own YouTube channel. Valdtv is very anti home owning so he asks alot of his wealthy guests and surprisingly most laugh when asked if they own or rent and the majority rent.
Think about it say you take a mortgage for 25 years the norm and after 25 years you have probably have a house that has doubled in price but add up what you have payed to the bank. Doesn’t look so good now.
Go look at what you could of made is a low cost index fund or gold golds around 400% profit and s and p 500 is even more so owning a house cant even be considered a investment its a liability

Don't go off what you saw on one interview and assume that is fact that works for all. Everyone's situation is different and location location location really matters as well.

"Think about it say you take a mortgage for 25 years the norm and after 25 years you have probably have a house that has doubled in price but add up what you have payed to the bank. Doesn’t look so good now."

Actually it does. You didn't subtract what you have put into principal(paying yourself), saved in tax deductions vs. what you would have paid in rent for a similar place. Chances are rent will be much more.

Rent over a 25 year period should be more expensive than a mortgage locked in 25 years ago. I keep raising rent on my tenants every year but my mortgages on those properties are locked in and use their money to pay down the loan and turn a profit.

I also just passed 5 years in my primary residence. House has been up over 100% ROI vs. the down payment in that time period. I have also gotten the tax deduction and it would cost me $1.5-$2k more per month to rent a similar place.

Outside of the headaches of ownership if you plan on being in one location for a long time and depending on location (rent and property appreciation) it could be much better buying.