927: Why I Am Never Going to Own a Home Again by James Altucher on Real Estate Investing & Home Ownership
This is optimal Finance Daily Episode Nine Twenty seven why I am never going to own a home again by James. All torture of James Auditor Dot Com and I'm Dan. I'm your host here on optimal finance daily review from some of the very best personal finance blogs on the planet and if you have any ideas for us for future shows topics. You'd like to hear US cover. Please share those by visiting old PODCAST DOT com. That's O. L. D. PODCASTS DOT COM and I wanNA thank send pro online from Pitney Bowes Shipping and mailing from your desk has never been simpler than with sent pro online from pitney bowes with Santa Pro Online. It's just click send and save for as low as four ninety nine. That's it's four dollars and ninety nine cents per month. Try It free for thirty days and get a free ten pounds scale when you visit P B dot com slash finance that's. PB Dot com slash finance and let's get right to today's post as we optimize your life why I am never going to own a home again by James Altar of James alter dot com. Many people have said to me in the past month. I'm going to buy a home or what do you think of the idea of buying a home. I like the second batch of people they're my friends and it seems like they are sincerely asking for my advice and I'm going to give it to them whether whether they meant it or not. I have some stories about owning a home. One of them is an article on my site. James altered dot com and titled what it feels like to be rich where I describe describe my complete path into utter depravity and insanity the other one is still too personal. It's filled with about as much pain as I can fit onto a page. Oh I have a third one also from when I was growing up but I don't want to upset anyone in my family so I'll leave it out. Oh and I have a fourth story that I just forgot about until this very second but enough about me. Let's get right to it. There are many reasons to not buy a home starting with financial a cash gone. You have to write a big fat. Check for a down payment but it's an investment you might say to me historically. This isn't true housing return point four percent per year from eighteen ninety two thousand four and that's just housing prices uses it forgets all the other stuff going to mention in a moment suffice to say when you write that check. You're never going to see that money again because even when you sell the house later you're we're just going to take that money and put it into another down payment. So if you buy a four hundred thousand dollar home just say goodbye to one hundred thousand dollars that you worked hard for you can put a little sign nine on the front lawn one hundred thousand dollars R. I P B closing costs. I forget what they were. The last two times I bought a house but it was about another two to three eighty percent out the window. Lawyers Title Insurance Moving Costs Antidepressant Medication. It adds up two to three percent. See maintenance no matter or what you're going to fix things lots of things in the lifespan of your house. Everything's GonNa Break Thrice. Get down on your hands and knees and fix it and then open up your checkbook again spend some more money I rent so with my dishwasher doesn't work. I call the landlord and he fixes it or I buy a new one and deducted from my rent and some guy from sears comes and installs it. I do nothing. The Sears Repairman and my landlord worked for me de taxes. There's this myth that you can deduct mortgage payment interest from mm your taxes whatever that's a microscopic dot on your tax returns. What's worse. Is the taxes you pay so your kids can get a great education. Whatever e you're you're trapped. Let's spell out very clearly why the myth of homeownership became religion in the United States. It's because corporations didn't want their employees to have many job choices so they encourage them to own homes so they can't move away and get new jobs job. Salaries is a function of supply and demand if you can't move then your supply of jobs is low you you can't argue the reverse since new adults are always competing with you f ugly saying my house is an investment forgets. The fact that a house has is all the qualities of the ugliest type of investment one illiquidity. You can't cash out whenever you want to high leverage. You have to borrow a lot of money in most cases assists and three no diversification for most people a house is by far the largest part of their portfolio and greatly exceeds the ten percent of net worth that any other investment vestment should be personal reasons not own a house a trap to par to some people like to have roots but I like things to change every once in a while starting in March two thousand nine. I was renting an apartment directly across the street from the New York Stock Exchange. It was fun. I look out the window and see Wall Street. How exciting before that I believe in the Chelsea Hotel with Chubb Rock last year we decided to relax and move a little north so now I look out the window and see the Hudson River and it's quiet and I can walk along the river in the morning with no noise. It took US two weeks to pick a place in move no hassles. I like to live a hassle. Free Life be walls. You can't change the walls when you rent a lot of people seem to WANNA tear down walls or paint them sometimes when you rent. You can't do these things. Well make sure you have a landlord that lets you tear down walls. There must be some ancient evolutionary tick that makes us want to tear down walls or put nails in them or paint them. I don't get it. I liked the walls to stay right where they are see rent. People will argue that the price of the mortgage maintenance taxes etc is all baked into the price of rent. Sometimes this is true but usually not de Psychology. You look at your personal reasons for wanting to own. Do you feel like you can't accomplish something in life until you own a house. Do you feel like it's part of getting married and settling down in other words. It's creating a nest for your future. Children for you is an part of becoming an adult is this your parents taught. You examine the real reasons you want to own and make sure they're coming from a good spot in your heart e your time. Do you really want to spend all that time working on your house. Is this where your time is best spent towards creating a happy. Dan fulfilled life for yourself. F- choices. I feel when I rent. I always have the choice to leave to live. Wherever in the world I want whenever I want adventure becomes comes a possibility even if I never take advantage of it g stress for me not for everyone owning a home equal stress. I saw what my parents went through at their worst moments owning a home. I saw what I and others went through in the Internet bust. When I I owned a home I saw what people went through in two thousand eight. People were killing themselves themselves. I don't like that sort of stress. If you WANNA know how I deal with stress check out my article titled. How to be the luckiest guy on the planet in four easy steps and h each cash is king. I like cash in the bank. I like having access to it. I don't like it all tied up in one illiquid investment. I WANNA fill a bathtub with all the the dollar bills. I would've used as a down payment on a house. I want to bathe in that bathtub. I'm GonNa do that later today in fact by the way this is going to sound like a contradiction but I think housing is a great investment right now. I think housing prices have gone down far enough and I can list the reasons why housing as an abstract investment concept is going to go higher from here but I don't like to write right about investing on this blog suffice to say there are many stocks you can buy with leverage if you want to take advantage of the rise in housing but I never going to buy a home again and sit there in the middle of the night thinking. Why would I do this to myself again. Sir. You just listened to the post titled. Why why I am never going to own a home again by James Altar of James Auditor Dot COM and don't forget that shipping and mailing from your desk has never been simpler than with send pro online line from Pitney bowes with central online from Pitney Bowes. It's just click send and save for as low as four dollars and ninety nine cents a month and for being an optimal finance daily listener you'll receive a free thirty day trial to get started and a free ten pounds scale to ensure you never overpay save time and money on mailing and shipping with. San Pro online mine starting at four ninety nine a month and again. That's four dollars ninety nine cents. You can also qualify for special. USPS rates for letters and priority mail shipping calculate calculate exact postage online and print from your pc go to pb dot com slash financed access this special offer for a free thirty day trial plus a free ten pounds mm scale to get started. That's P. B. Dot Com slash finance experience shipping made simple with a free trial of send pro online from Pitney Bowes and that will do it for today. Thanks again for listening and I'll see you tomorrow where your life awaits.