Quote:
Originally Posted by Johnny199r
I don't own any real estate and have no plans or desire to. I take the opposite view that you do.
My wife and I are professionals (40ish) we move every couple of years to a new town/city and always rent. I dont want anything to do with realtor fees, closing costs, property maintenance and repairs, home insurance, property taxes etc etc.
If I'm renting a house or apartment (we've done both) I like to hand my rent over at the end of each month and call the landlord if there are any problems (the basement in our current house had a minor flood twice last year, glad I didnt have to pay that bill for that repair!) The next place we are moving to next month (new city) is a 3 bedroom apartment with the nicest gym I've ever seen, surrounded by restaurants and shops.
Owning property for many people is a positive thing because a mortgage is a forced savings problem. It removes any temptation to spend that $1500 or $2500 each month on other things. Hopefully that asset appreciates over time, and the owner reaps the benefits.
My wife and I have the discipline to put lots of money into low cost ETFs through Questrade every month, so renting works for us. The additional benefit is we arent tied down, and are always flexible to go wherever we want next. Renting can be dangerous for those that dont have the discipline to invest their extra income after rent, but its not a problem for us. I'm willing to bet the stock market will be still be stable in my old age and that currencies will not erode as you believe.
It's like people who want to be landlords. God bless them, I could never put up with all of that work and potential headache of difficult tenants. I'd rather just invest in a REIT from my computer - aka property management companies that do all the work, get a nice return and never have to worry about a tenant who is always late with rent, trashes the house/apartment or spend my evenings doing repair jobs.
I find it fascinating the different paths people can take to end up at their ultimate retirement goal. I dont think their is one correct choice. Its just important to make a plan early on, and stick with it.
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I am beginning to warm up to this philosophy. It seems there is a compelling argument to suggest the markets are more profitable than home ownership
My hesitation regards terrible landlords, renovictions, constant rent increases, etc. It may be ego, or just a traditional way of thinking that I can't get past, but I don't like the idea of being in my 60s without the security of my own home and living under an other's rules. Plus, the idea of having no mortgage/rent payment in retirement is nice.
I will be selling my house soon and renting short-term. I'll ponder my path during that time.