Why Buying a Home is One of the Biggest Mistakes Young People Make 

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I have been following your strategy for the past 34 years and I agree with you 100%. Prodigious investor. I would never have the net worth that I do now if I had purchased real estate earlier in life. I live in Boston, MA and plan to retire in a less expensive state. People think I'm nuts to rent but I always believed that it would work in my favor in the long run. I'm so glad that you confirmed what I've always believed to be true. 😊

Where have you been all my life? Thank you.

Soo well spoken and very detailed discussions.

I do not know how to thank you enough for your work!

Thanks Sharon, big fan of your advice. Would it be possible for you to share a Google Sheets version of this spreadsheet? I'd love to play around with numbers specific to my home.

Could you provide a list of quality real estate syndicates / funds and or an agency that rates syndicates and funds. I will perform my own due diligence. Thank you! I really respect your videos as you do the homework and summarize the info/data in a practical equation!

Great video again, thank you! As far as accredited investor, do you have some material that outline more details on optional investments? How would one access such investments and how to find them?

Thank you for this comprehensive breakdown, Sharon! Would you be able to share that spreadsheet with us to play with the numbers? Thank you!

Great 👍 video and explanation. 🤔 would this apply too house hacking?

Please comment on the tax advantages for home ownership.

What is your thoughts on HELOC's? It reminds me alot of SBLOCs. The biggest difference I see is that it is less liquid and the former requires a good credit score to have access to.

It's an eye-opening analysis. Could you share your research what's the average expected annual return as an accredited investor? Private Equity or Hedge Fund sounds great, but I assume investments are tied to the long term. So probably they are illiquid. Does accredited investments offer some cash flows to cover expenses??

I have an appalling criminal record, but have a good-ish paying stable long term job. Because of my record, nobody will rent to me. Its almost impossible to get respectable accomodations, without persecution, that are long term reliable. But the lending company had no problem loaning me/wife for a home of our own, so buying is our only real option. Now, considering the fact that i bought a home, would you recommend plowing my money into the mortgage to get the principal down quickly in the first few years, or instead put extra money into these other true assets? I assume you're going to say the latter.

Being a 30 year real estate landlord in a US city i agree. Home ownership isnt worth it now. There are too many other ways to make money that work while you rent. Things have changed since bidenomics 😂

All of the math may be true, but in the end, life is not a math problem. Otherwise Starbucks, eating out, new cars, fancy vacations and other “wastes of money” would not exist. I expect that you have never had a bottle of wine for more than 2 buck chuck at Trader Joe’s. At 57 my house of 30 years is hungry for $100,000 of repairs upgrades and renovations. So I agree, the math is not so clear on a home as an investment. My experience looking at suitable rental homes though is they are generally tired and kept in just good enough condition to be rentable. Is that the way you want to live? Just as someone shops for a Honda Accord (a $40,000 car anymore) over a cheaper Civic (I’m modeling most conservatively here) or choosing SUVs at all (less efficient hardly larger than a sedan), you make choices that play to your wants and needs, not the math. Add to that random life events such as the death of a spouse (yeah it sucks), kids moving out of state, inflation and general unaffordable rentals ($5,000/mo for a home here in So Cal) and who knows how your life would have turned out if you’d saved ALL your money and could admire a big number in a brokerage account. The example here assumes that every bit of money that you would have spent on a house is squirreled away investing to reap the harvest of compounding. The author makes a list of housing expenses but ignores the list of life expenses that your money might siphon off to if you rented. I’ve never met a dollar that didn’t tell me it was better used elsewhere. After saving all their life, people have another problem, feeling like they can spend the money they worked so hard to save. If your biggest mistake in life is having $3M at the end instead of $5M then you don’t have a lot of problems.

I agree that home ownership as an investment is oversold…but….and a big but…when doing a comparison between long terms cost/benefit, I wish people would use realistic investment returns outside of real estate. The past 30 or so years we have had an unprecedented explosion that many doubt will continue as baby boomers retire and inflation soars. I’ve seen folks promoting renting use %12 returns as a risk free return in the market. I would like to see the comparison done with like a ~5% risk free return which is what many markets are paying now. And if the Fed lowers interest rates to fight a recession, that will be lower too.

Homes are for raising a family... not for making money.. A home as investment is the secondary reason but not the primary. If one can afford to buy a home why not. It is an individual choice What is ingrained to peoples' mind is money money money...Making money lots of money which is wrong. In my opinion real estate works..Renting are for those who really can't buy a home, those who doesn't make enough. Would you be renting until retirement, not me. Home prices had been going up since time in memorial.. I know people who own 2,3 4 or even more. They live in one and rent the rest..

Given how expensive NYC rents are now, do you think buying a home especially for folks in their mid-30s is still a bad idea (say, atleast 400k savings in the stock market)

My home has increase 16% yoy since purchase.

Sharon drops facts and truth, but I’m here for the infinite new yorker rant against conventional wisdom 😂.

If your home is going up 20% a year and your maintenance is 1% in not exactly sure how you’re hurting yourself

Any products offered by the banks or the goverment is a RIPOFF like mortgages, loans, money management, subsidies etc. you'll pay dearly to pooverty.

Assuming you spend 44 000 a year on rent in 30 years you would have spend $1320 000. In rent. Is going to be more than that. How is it that it doesn't count. Or you did count it. I'm missing something? Ok. I got it! brilliant. Thank you.I had two replay it, to understand.

I agree with her model did she figure in the interest that can be deduced on your tax return . this lower the income tax she will pay.

In 2052, you will have paid for two homes ($1,350,000 in mortgage payments).

❤❤❤ Sharon

This should be taught to everyone in College!