Source: Motley Fool —
“House prices always go up. You’re throwing money away by renting, and paying your landlord’s mortgage while you’re at it.” Odds are that you’ve heard this oft-repeated financial advice before.
To Ramit Sethi, author of I Will Teach You To Be Rich, it’s not financial advice. It’s financial propaganda. He says renting can be a better choice than buying a home, and house prices don’t always go up. Recently, he compared buying a house to buying a car, because the minute you make the purchase, you’re underwater.
Considering how often we hear about the importance of owning a home, Sethi’s take might seem way off. But he makes some good points that are worth thinking about, especially if you’re debating whether to buy or rent.
House prices don’t always go up
It’s amazing how it’s so widely accepted that house prices will always rise when we just had a housing crash less than 20 years ago. Real estate, like any other market, goes through its ups and downs. Some experts even say we’re in a housing recession right now.
Now, one could make the argument that given enough time, real estate prices will go up. That’s true, but there is a counterpoint that home buyers need to know.
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