Home Ownership: A Marketing Scam?

Here’s a very interesting video from TheStreet.com.  James Altucher asserts that owning a home isn’t the American Dream. It’s just a marketing scam perpetrated by Home Builders!

Check out this interesting 2 minute video. He makes some valid points.

It’s true, if you’re not paying cash, then you’re renting the money to buy a house, so you’re still technically a renter. However, home ownership has some advantages:

  • You can decorate your place any way you see fit.
  • You get tax breaks which in some situations might make the cost of owning lower than renting.
  • But most importantly, owning real assets (like real estate and gold) protects you against inflation. Of course, if you believe that inflation is and always will be 2% then you should just rent.
  • Even if there were no financial benefits, you still want to own your own home so you don’t have to worry in your old age. If you buy a house when you’re 35 and pay it off by the time you’re 65 and retired, you have one less thing to worry about paying.

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