I was looking at the Outlook section of The Washington Post this morning to what appears to be an ongoing series "The 5 Myths of...." Today's topic was the "5 Myths About Home Sweet Ownership." Some I agree with but at least one I do not. To recap the article, linked below, The Five Myths were 1. Housing is a Great Long Term Investment. 2. The Homebuyer Tax Credit Makes buying a House More Affordable. 3. Homeownership is Good For Society Because Owners Make Better Citizens. It's Safe To Buy A House With A Very Low Down Payment. 5. Owning A Home is Cheaper Than Renting One Because You Save On Rent. Number Five is the one I disagree with wholeheartedly. I disagree with the assumption that paying rent long term is a good deal. Perhaps if you live in a rent controlled apartment in NYC or D.C. or you may not be in the area very long (usually less than three years but today's market may justify a longer term for renting). In my experience, and I am a real estate investor, renting long term is just absolutely stupid in most instances. Although the article may be applicable to many home purchasers, if you plan your purchase carefully, and run the numbers carefully (even if you are a homeowner), you can make a fortune in real estate. Not to brag, but as an example of why this article is so wrong especially on #5, I am still $300,000 ahead today on my primary residence in a down market which I have only owned for 10 years. I made $50,000 on an investment property the moment I went to settlement this past Summer and I plan on doing it again and again and again. The article takes a short sighted view of real estate. It goes to show that you shouldnt necessarily believe everything you read in the paper. Read the article and tell me what you think.
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