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Susie Orman's New About-face Advice About Renting vs. Buying

Reblogger Matt Brady
Mortgage and Lending with Watermark Capital NMLS #311662

I am so sick of the talking heads on TV that say whatever goes with the story the network is trying to overblow. The truth is the truth and at the very least they need to state that it is thier opinion, people have a right to be wrong. I would be happy to track one of my recent clients that bought a home and compare it to someone with similar income that chooses to rent. 25 years from know my clients are going to be so happy they chose to buy.

Original content by Tiffany Torgan DRE# 01276329

I was just watching the NBC Nightly News and they had a piece on Susie Orman and her advice for frugalness in this new Economy. Living within your means and saving is certainly is a good thing, but she says the goal of the owning the American Dream is a thing of the past for Americans. Also, her advice was that Americans should strive to live below their means and downsize. What does this really say about achieving high goals and the course our country is going in?Hasn't our country been built on high achievers with high goals?

Here is what she has written in a article I Googled, she did a complete turn around on her advice on owning vs renting! She said, yes it is ok to rent for the rest of your life and never own a home. This is so sad to me that even someone as smart and good with money doesn't see owning a home a good investment anymore for the future, but historically home prices have been a very solid investment over the course of time. Yes, if you bought in 2005 (like I did) and need to sell of course it would be bad, but I'm in it for the long term. Many homeowners have been able to retire off of the equity they have built from home ownership. So, do you think her advice is correct for today's economy? How does that come across when a famous financial guru decides to smash the American dream? This is the second time this week I have heard of a public financial guru suggest renting is the way to go. I just have always felt that renting was like throwing away money if you really didn't have to rent.

 

Finance Home > Money Matters > The Buy vs. Rent Decision
The Buy vs. Rent Decision

House Rules: How to Decide If It's Time to Own Rather Than Rent

By Suze Orman

 

Home ownership is the greatest AMERICAN DREAM, is it not?

Tiffany Torgan~Broker/Realtor, San Diego, (La Jolla) California

San Diego Real Estate and Relocation Specialist

Prestige Properties Realty/New Century Real Estate Group, Inc.

Tiffany Torgan

http://www.relosandiego.com

Blog Post:

http://www.sandiegoca-realestate.com

(858) 459-5478 Office/ (858) 504-8433 Cell

CA DRE license # 01276329

 

Posted by

Matt Brady

Branch Manager, NMLS ID#311662

(858)342-8659 cell |

matt.brady@watermarkhomeloans.com  
8885 Rio San Diego Dr │ Suite 201 │ San Diego, CA 92108     

 

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BIA SMCBoard Member since 2012

 

 

 

 

Show All Comments
Mark Artesani
Keller Williams Realty - Fountain Valley, CA
Huntington & Newport Beach, Fountain Valley Homes

Matt,

I have not read what Susie Orman said but I do know what history has taught us and that is that Real Estate is the main way that Americans gain wealth.

I do believe that everyone may not be able to own property and one thing that got us into the mess that we did get into was some members of the goverment trying to make it so everyone could own Real Estate.

Mark

Mar 28, 2011 09:08 AM
Greg Saffell
Tucson, AZ
Real Estate Professional Tucson, Oro Valley AZ

Maybe what Suze meant was that the game has changed somewhat, one size does not fit all. Not everyone should be homeowners and renting makes a lot of sense in some cases. 

Mar 28, 2011 09:59 AM
Matt Brady
Watermark Capital - Del Mar, CA
One of San Diego's Best Equity Advisors

Mark, I am with you. When the idea that part of America was being discriminated against, and EVERYONE deserved to own a home we started down thee wrong path. I know I have made much more investing in the right properties than I could ever have made in the market.

 

Greg,

You are correct not everyone should purchase a home, BUT some (most) people should. The idea that if you qualify for a mortgage that in most cases is the same as rent or better if you consider the tax advantages you should continue to rent is crazy. Depending on your age, if you intend to be in the same place for the next five years you should be a buyer. Your thoughts?

 

Mar 28, 2011 11:05 AM
Tiffany Torgan
Harcourts Prestige Properties of La Jolla - La Jolla, CA
Featured on HGTV's New Show! How Close Can I Beach

Hi Matt, thanks so much for the re-blog! I agree with what you commented on Greg's comment, but I am starting to think that 10 years is a better goal for a period of owning a home.

Mar 28, 2011 08:17 PM
Matt Brady
Watermark Capital - Del Mar, CA
One of San Diego's Best Equity Advisors

Hi Tiffany,

Nice post. You are right 10 years is probably better than five. My point is that at five you probably will be able to at least break even on the cost of sale and make the purchase more attractive than buying. I run numbers for my VA buyers all the time to calculate the break even points if they were to be reassigned. I try to give people the whole picture and tell them honestly if a transaction makes sense. In todays environment keeping properties as investments is a popular choice sense rents are so attractive and rates are so low.

Mar 29, 2011 04:42 AM
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