Adams Myth on renting vs. owning
Photo: Mr. Blandings Builds His Dream House
Question: I’ve been renting an apartment for years and have no complaints. Everybody says I should be practical and buy my own place. What’s more practical, renting or buying?
Adams Myth: Unless you can catch the market’s bottom, renting is always more practical in this country — no risk to your capital. Consider, property values today are still below what they were ten years ago. So if you had been renting all this time, while investing the money you might have used to buy a place in a boring time deposit, you’d be well ahead of your “more practical” home-owning friends.
Q. Where is a safe place to invest my P200,000?
AM. In this environment, cash is still king.
Answers to questions you might be asking, unless you wandered onto this site purely by accident >>>
January 13th, 2009 at 14:01
Unless you can catch the market’s bottom, renting is always more practical in this country — no risk to your capital.
This answers a question in my head, Mr. Myth: How do we approach buying a house? Do we treat it like an investment, or do we treat it like any other purchase that we use up (like a car, for instance). I always thought it was the latter but I keep hearing of a house being ‘an investment’.
January 14th, 2009 at 14:31
On investing – I have shares with a mutual fund which I bought 2 years ago – it’s currently valued at just 70% of the price I bought it for back then.
Do you think it’s wise for me to leave it there and wait for the market to pick-up? Or should I re-invest and maybe gain more than my poorly performing mutual fund?
Hope to get your advise on this… thanks!