Rent or buy the primary residence

2 Replies

Hi Everyone,

Recently I heard from a real estate investment guru that buying the primary residence to live in is the worse real estate investment ever.  I was surprised but his argument seemed to be sound. 

Granted that I can enjoy the tax break from the mortgage interest and it is cheaper to pay mortgage than rent,  I am wondering in the same time if I should sell my house and rent.  

I live in a class A area where the rent ration is about 0.7% only.  I can sell my house and get about $250k equity and use it to reinvest in a few other houses that have more than 1.5% rent ratio, and in the meantime spend $3000/month to rent a house that is better than mine.  Does this make sense to you?  I am eager to hear what you have to say... cause it is very hard to convince my wife to sell our house..  :-(

David

Originally posted by @David Y. :

Hi Everyone,

Recently I heard from a real estate investment guru that buying the primary residence to live in is the worse real estate investment ever.  I was surprised but his argument seemed to be sound. 

Gurus can often get a bit carried away with the numbers, and what makes 'sense', blah blah blah.

Own your own home. At the end of the day, when you've leveraged everything else in your life, the last thing you should be leveraging is the home that you, your wife and your children live in.  

You have a duty to your immediate family not to put them at risk.

Thank you @James DeRoest!  

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