Peter Schiff bursting the myth House = Investment

Peter Schiff bursting the myth HOUSE = SAFE INVESTMENT propagated by banks, real estate agents & brokers and mortgage companies (It's to them but not to you )

I hear people say that their house is their investment. A house you live in is not a nest egg or an investment. You'd be better off renting than buying a house and living in it. Yet if you choose to buy a house and rent it, then it becomes an investment, but a very risky and volatile investment in the long run as all real estate is. Don't believe Mortgage Companies and banks who try to convince you that a house is a safe investment. Owning a house is a luxury not a necessity. It's like lodging in a hotel as compared to an inn: You pay for the luxury. This is not an investment. But if I can rent a house and enjoy the same luxury without having to pay tax, insurance, and mortgage interest and wear & tear (and in some places I can still not pay utilities), why would I expose myself to the risk of a volatile real estate property as all real estate properties are in the long term (a mortgage is very long term commitment)? In fact you can still rent cheaper than what the owner is paying (because he relies on tax credits to make a profit).In this way I can simply invest the difference and appreciate my wealth without getting into debt. In the long run, I will have lived in the owner's house all these years, yet still made a lot of money by saving and investment. After 20 years, I will be able with my savings to buy the owner's house in cash and have lots of money for my retirement as well.
http://www.facebook.com/pages/A-Fresh-Financial-Start-in-2011/182125798471447...

Category:

Education

Tags:

• mortgage
• real
• estate
• money
• financial
• wealth
• retirement
• peter
• schiff
• banks
• home
• owners
• renter

[alexjonesviewer]

I couldn't agree more