Short excerpt from a YouTube video by Nick Perry debating renting versus buying. SPEAKER B argues rent where you live and own income-producing multifamily properties instead, criticizing 30-year mortgages, interest payments, taxes, insurance, HOA fees, and maintenance as liabilities; SPEAKER A asks who should rent (newlyweds, 30-year-olds).
Rent where you live, own what you rent. The banks wanted you to buy houses so that you could be in a 30 year mortgage and pay them. Yeah. And the interest is not an asset, it's a liability. It doesn't pay you, it doesn't cash flow. They own the house, not you. You're paying taxes on that forever. So if you don't pay taxes, who owns your house? Not you.
So then why not rent for the newlywed? For the 30 year old?
Rent? Of course you should rent. Why are you owning? It's ridiculous. Be the owner of the multifamily and collect the rents.
This is horrible advice is what I would have said in 2019, but this is the best move, especially in the current economy, because owning means that you're paying taxes, insurance, HOA fees, and every single repair and piece of maintenance, all with 7% interest after putting a whopping 20% down for the first seven years. You're not even paying for the home, you're paying for the interest on it. So if you don't want to slave your life away, keep your expenses low and rent.
