To Own A Home, Or Not To Own A Home?
I ran across this controversial article on Zillow and thought I’d share. Although I agree with many points made by the author Grant Cardone with respect to the true definition of an asset, the benefits of multifamily investment property, and the concept of investing in yourself and/or a business… I unequivocally disagree with the idea that opting to rent in lieu of owning your own home is sound financial positioning.
I’m a firm believer in the concept of buying assets that fund themselves while fully or partially subsidizing other liabilities in the expense column. Although I agree that an investment in multifamily or other income producing property is an excellent way to accomplish this, I’m also reminded of a saying that has something to do with a road and good intentions. We live in a world of volatile employment and paper investments and only a seemingly small percentage of the population exhibits any ambition to physically own real estate beyond the scope of a personal residence. In my opinion, owning a home is not only cheaper than renting but also a turn-key way to reclaim a percentage of the inevitable housing expense. The opportunity to capitalize on the derivative benefits of appreciation and depreciation in order to accelerate equity build up is also an attractive benefit. Home ownership may not fall in line with an investor’s definition of an asset… but in the end, I would think a subsidized investment would trump no investment at all.
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