One BusinessInsider's take on Never buying a home again

1 Reply

BusinessInsider is hit-or-miss for me. Sometimes they come out with helpful bits to think about, while other articles are downright satirical. Although this is an opinion piece, I feel its direction is horribly misguided. I would like to invite the BP community to dissect what this individual is writing and where he is coming from. What are your thoughts? http://www.businessinsider.com/why-ill-never-buy-a-home-again-2015-6?utm_content=buffer476ba&utm_medium=social&utm_source=facebook.com&utm_campaign=buffer

@Nathan Yee I agree with the author of the article on most of his points. Now don't get me wrong, I love real estate. However I see it as an investment. There is nothing emotional involved when making a purchase. I do own real estate of course, but only investment properties. In my opinion even a person's primary residence should be bought as an investment property. By that I mean you purchase it with the intent to either do a long term value add flip, or you purchase it as a long term buy and hold with the intent to rent it out for a profit after you move. That means that you should be looking for a deal and purchase the property at a good discount. If you are a buy and hold investor like me, you should purchase in an area and with the amenities that would make it a good rental. 

Compare that with how the average person buys real estate. Many are competing with their friends and family and trying to appear wealthy. They want features and amenities that have nothing to do with necessity or value. Many buy a property at a price that makes it an overall bad deal, where if they wanted to move, the either couldn't sell it for what they paid, or they wouldn't be able to rent it out and cover 100% of the mortgage payment. 

Of course I do disagree with the author on the point he makes about never seeing the money you invest again. We all know that there are multiple ways to draw out your equity without having to sell your property, but that is only beneficial in my opinion if you use that money to make further investments, and the property itself is cash flowing.

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