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"Why I will never buy a house": all the disadvantages of home ownership
Weighty arguments James AltusheraDzheyms Altusher
Recently, people often say to me something like "I'm going to buy a house," or "What do you think about the idea to buy a house?" The second option I prefer. People ask this question - my friends, and it seems it is really important is my opinion. So, now I will tell you my opinion on this matter, although perhaps in a different way, what you expect to hear.
I have a lot of experience of home ownership. I bought a house, where a fortune by selling his first business, and yet I had a house where I lived with my ex-wife (it ended in divorce), as well as the house where I grew up, and another one, which I generally forgot to this moment ... But enough about me. You already knew that I had the opportunity to examine in detail homeownership. And now, the conclusion to which I came.
There are plenty of reasons NOT to buy a house or some other permanent home.
Reason 1: Finansovayaa. Your money evaporate
Going to buy finally cherished home? Go to the bank and take away all his money, all that managed to accumulate, because from that moment your life is "decorated" continuous financial outlay. For example, you need a huge down payment to take advantage of the mortgage. "But buying real estate - is an investment!" - You will object. Well, you know, that in the period from 1890 until 2004, property prices grew at an average speed ... 0, 4% per year. And that's just the cost of the building, from the walls and roof, and not all related homeownership, what I'm going to tell you below. So if you buy a property for example, $ 400,000, you can just say "goodbye" to $ 100 000 (earned by hard work) of them. You can even put a memorial on the front lawn: «RIP $ 100,000».
b. Related costs
Real estate agents, commissions, notaries, transfer, repair, anti-depressants - that's another 2-3% of the cost of housing.
at. Maintenance
People did not seem to think about how often in the house something breaks. Your house is big, there are a lot of things, household appliances, all communications ... Oh, the washing machine has begun to flow. Kneel, tuck your sleeves and fix the situation. It did not work? Call the master, who will tell you that the pipes are rotten, they are patched, the patch fell off and you need to change everything. Reach for a credit card! And again, and again, and again.
I rent. If I broke stiralka, I called the owner and he sends a wizard. All. I do not do anything, because the owner of the house works for me.
of You are trapped
Let me explain very clearly why home ownership is constantly encouraged by the government: all sorts of programs for affordable housing and so on. Because they do not want you to leave. All: and large business owners, for which you work, and the country's leadership, which is closely associated with this business is very profitable for you to sit in one place. Needless to travel back and forth in search of a better life. Buy property, pay the mortgage and consoled himself an old saying "where he was born there and handy».
d. unprofitable
Those who entertain the thought of "my house - my investment" should not forget that the property has all three characteristics unfavorable investment:
illiquid. You can not cash out their investments in the short term. The high debt burden. In most cases, to buy a home, have to borrow a lot of money - a bank or Yeshe someone. The inability to diversify. You have to share the money if you do not want to lose everything again. For most homeowners home is a significant (if not all) the share of investment. And of course, much higher than those of 10% of capital, it is recommended to invest in a single asset. 2. LichnayaZdes reason I set some more arguments against home ownership that concern me personally.
a. You are trapped (Part 2)
Some people like to "have roots," but it's not about me. I love to change something from time to time (at least occasionally). In 2009, for example, I rented an apartment overlooks the Wall Street. Right on the New York Stock Exchange! It was cool. Before that I lived in a hotel at all. And last year we decided to change the situation and move a little to the north. Now, I look out the window and see the Hudson river, sometimes calm, sometimes very stormy. All relocation, including the selection of the house, took us two weeks. No problem. You can condemn, but I like the carefree life.
b. walls
You can not change the layout in rented accommodation. Some people seem to love to take down the walls, perhaps it's somewhere in the genes incorporated. The evolution of this: "Remember, you want to live well in the new house - demolished all the walls!" Like, expand the space (to infinity). I do not understand this. I like the wall, so let them stay where there are.
at. Rental
Sometimes people say that all spending: the price of the mortgage, taxes, home maintenance - incorporated in the price. Sometimes this is true, but as a rule - no.
of Life
Look closely at the reasons that you are going to buy a house. You feel "frustrated", not owning their own housing, where it is possible to settle a family and children? You need to "family nest"? Or maybe you just were sighing under the influence of parents and social stereotypes? Think seriously - it is imperfect and unhappy your life without tenure?
d. Choice
While I live in a removable housing, I feel that I always have a choice. I can leave at any time. I can live in a place of peace, where I want. Action becomes possible, even if I never use it.
e. Stress
For me (not all) of home ownership - is stress. I saw that went through my parents, before payment of the value of our house until the end. Sometimes they had very tight. I saw that went through my friends. I myself for some time had a home. And yet - I have seen in the crisis of 2008 people who lost their homes or the ability to pay the mortgage, committed suicide. His house - a source of stress, and I do not like stress.
Well. Money
I like to have a bank account. I like to have access to their money at any time. And I do not like to deal with illiquid investments. I want a bath filled with dollar bills in the amount equal to the cost of the payment for the house. I want to bathe in the tub (probably do it right tonight). In general, own money, I love more than to own a bunch of folded in a certain order of building materials.
By the way, now is an excellent time to invest in real estate. The crisis and all that - I could calculate the amount of leverage and profitable to play on the sale. But you know what? I never in my life do not buy a house. I do not want, you know, sit in the morning and think, "Why, why, hell, I got in touch with all that again ?!»
via www.jamesaltucher.com/2011/03/why-i-am-never-going-to-own-a-home-again/
Recently, people often say to me something like "I'm going to buy a house," or "What do you think about the idea to buy a house?" The second option I prefer. People ask this question - my friends, and it seems it is really important is my opinion. So, now I will tell you my opinion on this matter, although perhaps in a different way, what you expect to hear.
I have a lot of experience of home ownership. I bought a house, where a fortune by selling his first business, and yet I had a house where I lived with my ex-wife (it ended in divorce), as well as the house where I grew up, and another one, which I generally forgot to this moment ... But enough about me. You already knew that I had the opportunity to examine in detail homeownership. And now, the conclusion to which I came.
There are plenty of reasons NOT to buy a house or some other permanent home.
Reason 1: Finansovayaa. Your money evaporate
Going to buy finally cherished home? Go to the bank and take away all his money, all that managed to accumulate, because from that moment your life is "decorated" continuous financial outlay. For example, you need a huge down payment to take advantage of the mortgage. "But buying real estate - is an investment!" - You will object. Well, you know, that in the period from 1890 until 2004, property prices grew at an average speed ... 0, 4% per year. And that's just the cost of the building, from the walls and roof, and not all related homeownership, what I'm going to tell you below. So if you buy a property for example, $ 400,000, you can just say "goodbye" to $ 100 000 (earned by hard work) of them. You can even put a memorial on the front lawn: «RIP $ 100,000».
b. Related costs
Real estate agents, commissions, notaries, transfer, repair, anti-depressants - that's another 2-3% of the cost of housing.
at. Maintenance
People did not seem to think about how often in the house something breaks. Your house is big, there are a lot of things, household appliances, all communications ... Oh, the washing machine has begun to flow. Kneel, tuck your sleeves and fix the situation. It did not work? Call the master, who will tell you that the pipes are rotten, they are patched, the patch fell off and you need to change everything. Reach for a credit card! And again, and again, and again.
I rent. If I broke stiralka, I called the owner and he sends a wizard. All. I do not do anything, because the owner of the house works for me.
of You are trapped
Let me explain very clearly why home ownership is constantly encouraged by the government: all sorts of programs for affordable housing and so on. Because they do not want you to leave. All: and large business owners, for which you work, and the country's leadership, which is closely associated with this business is very profitable for you to sit in one place. Needless to travel back and forth in search of a better life. Buy property, pay the mortgage and consoled himself an old saying "where he was born there and handy».
d. unprofitable
Those who entertain the thought of "my house - my investment" should not forget that the property has all three characteristics unfavorable investment:
illiquid. You can not cash out their investments in the short term. The high debt burden. In most cases, to buy a home, have to borrow a lot of money - a bank or Yeshe someone. The inability to diversify. You have to share the money if you do not want to lose everything again. For most homeowners home is a significant (if not all) the share of investment. And of course, much higher than those of 10% of capital, it is recommended to invest in a single asset. 2. LichnayaZdes reason I set some more arguments against home ownership that concern me personally.
a. You are trapped (Part 2)
Some people like to "have roots," but it's not about me. I love to change something from time to time (at least occasionally). In 2009, for example, I rented an apartment overlooks the Wall Street. Right on the New York Stock Exchange! It was cool. Before that I lived in a hotel at all. And last year we decided to change the situation and move a little to the north. Now, I look out the window and see the Hudson river, sometimes calm, sometimes very stormy. All relocation, including the selection of the house, took us two weeks. No problem. You can condemn, but I like the carefree life.
b. walls
You can not change the layout in rented accommodation. Some people seem to love to take down the walls, perhaps it's somewhere in the genes incorporated. The evolution of this: "Remember, you want to live well in the new house - demolished all the walls!" Like, expand the space (to infinity). I do not understand this. I like the wall, so let them stay where there are.
at. Rental
Sometimes people say that all spending: the price of the mortgage, taxes, home maintenance - incorporated in the price. Sometimes this is true, but as a rule - no.
of Life
Look closely at the reasons that you are going to buy a house. You feel "frustrated", not owning their own housing, where it is possible to settle a family and children? You need to "family nest"? Or maybe you just were sighing under the influence of parents and social stereotypes? Think seriously - it is imperfect and unhappy your life without tenure?
d. Choice
While I live in a removable housing, I feel that I always have a choice. I can leave at any time. I can live in a place of peace, where I want. Action becomes possible, even if I never use it.
e. Stress
For me (not all) of home ownership - is stress. I saw that went through my parents, before payment of the value of our house until the end. Sometimes they had very tight. I saw that went through my friends. I myself for some time had a home. And yet - I have seen in the crisis of 2008 people who lost their homes or the ability to pay the mortgage, committed suicide. His house - a source of stress, and I do not like stress.
Well. Money
I like to have a bank account. I like to have access to their money at any time. And I do not like to deal with illiquid investments. I want a bath filled with dollar bills in the amount equal to the cost of the payment for the house. I want to bathe in the tub (probably do it right tonight). In general, own money, I love more than to own a bunch of folded in a certain order of building materials.
By the way, now is an excellent time to invest in real estate. The crisis and all that - I could calculate the amount of leverage and profitable to play on the sale. But you know what? I never in my life do not buy a house. I do not want, you know, sit in the morning and think, "Why, why, hell, I got in touch with all that again ?!»
via www.jamesaltucher.com/2011/03/why-i-am-never-going-to-own-a-home-again/
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