Home Sweet Home

 

"Let me start by saying that whoever the ubiquitous 'they' are who say 'renting is like throwing your money away' aren't accurate. I've read that opinion in several well-known financial planning guides, and I just don't know where the authors are coming from. Paying rent is no more throwing your money away than buying food or clothing is. You need shelter. It's one of the three basic necessities of life. Renting is one way to acquire that shelter and, in some cases, it's a very intelligent way.

"I'll let you in on another secret. The reason the vast majority of homeowners say that their house is the best investment they've ever made is simple: It's usually the only investment they've ever made. My customers are always saying to me, 'Yep, Roy, my house is the best investment the wife and I have ever made.' I ask them, 'What else have you invested in?' 'Hmm,' they reply, 'we bought some old stamps one time . . . oh, and a stock on the Denver exchange.' I'm sure you get my drift. The fact—"

"Hold on, Roy," I interrupted. "You're not trying to tell us that you don't believe in home ownership, are you? I've never heard of anyone who lost money through home ownership. And you get to live there rent-free, too."

"No, Dave, I'm not saying that I don't believe in home ownership. But I am saying that there are some widely held misconceptions about the investment merits of owning a home. Do I believe you should own a home, Dave? Yes. But do I believe everyone should own a home? No!

"As I said a moment ago, along with food and clothing, shelter is one of life's three essentials. Everyone needs shelter and it can be obtained in only two ways: You can rent it or you can own it."

"I want to own," I interjected emphatically. "Mom and