The Stacking Benjamins Show The Great Debate: Buying vs Renting Your Home (SB1677)
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May 2, 2025 Join Jesse Cramer, host of the Personal Finance for Long-Term Investors podcast, as he passionately debates the benefits of buying versus renting a home. He reveals surprising truths about renting, dispels myths about homeownership being a guaranteed investment, and shares the hidden costs many new buyers overlook. With anecdotes and spirited discussions, Jesse emphasizes the need for financial flexibility and personal circumstances in the housing decision. Plus, enjoy some lighthearted trivia and banter that keeps the conversation lively!
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Low ROI of Long-Term Homeownership
- Chris Luger calculated his homeownership ROI over 23 years and found it only 0.05% after maintenance and costs.
- Despite home value doubling, expenses like carpet and appliance replacements eroded most gains.
The Reality of Buying vs Renting
- Both buying and renting have significant opportunity costs and are financially losing propositions in some ways.
- Owning a home is practical for shelter, but rarely a strong net financial investment when all costs are considered.
Account for Closing Costs
- Always factor closing costs and associated fees into your home purchase budget.
- Professional services during buying add value but increase upfront expenses significantly.