video completely ignores buyer/seller/renter market. in a renter's market you might have 30 apps competing for 1 place (i know because i'm a landlord) and i always will raise my rental rate to get the best possible rate. same goes for buyer/sellers market and how that impacts short term prices. The right answer depends on WHEN and WHERE you are buying/selling/renting!!! Also LAND does not depreciate and if you own a own you almost always own the land it's on as well.
true, comparing it to apt rental is unfair. it doesn't change the fact that housing as a primary residence generally provides a poor return when people consider it their investment.
In case some aren't aware of it, the NY Times Buy vs. Rent Calculator is a pretty good tool for such questions. http://www.nytimes.com/interactive/business/buy-rent-calculator.html
I don't agree that it is a poor investment. I agree that (lifestyle, space, pride in ownership notwithstanding) if you're okay with staying in a small apartment for the rest of your life, you will end up with more money after 30 years than if you bought a bigger house. But as soon as you compare same size houses to apartments, I think it is fair to say that the house is the better investment. Yes, I said investment.
A poor rate of return as an investment, but it isn't just an investment. I can't live in my stock portfolio. Of course, if I didn't have a family, I think I would live in a tent and just hoard my money.
certainly there are many intangibles for home ownership. both renting and buying have their advantages/disadvantages. which is better is as you said, it depends. but i believe there's an argument to be made that renting isn't throwing money away and home ownership isn't always the best financial decision.
Renting carries less risk and allows you to be more flexible in life. No doubt it can be more advantageous (otherwise only poor or stupid people would rent). Renting isn't throwing money away. Renting the same place that you could have bought a comparable place for 10+ years is usually a mistake. Buying and selling every 5 years like some people do is usually a mistake.
Point still stands...in the case people are now watching the video thinking that a CD can be an option.
Stagnant wages. Complete lack of first-time home buyers. I don't see how they keep going up from here, but I've said that before and been left dumbfounded.
Use your river oaks money and sign yourself for a good English class. Incorrect spelling of the guy's name? Terrible.
the guy hasn't earned the right to have his name spelled correctly by me the dufus' article on home buying was pathetic not impressed
Sal Khan has done more to impact the world than 99.99999999% of the population. How are you going to insult the guy?
A 10 minute video doesn't cover the complex anatomy of a home purchase from every angle and scenario. You don't say! With as simplified and dumbed down as that video is, it's still more in depth than the advice most people received about housing in run-up to the bubble bursting (housing always goes up, buy now or be priced out forever, etc).
