3 Money Experts Who Don’t Think You Need To Buy a House
Written by
Kristopher Kane
Edited by
Amber Barkley
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Homeownership is a cultural milestone that almost everyone aspires to reach at some point in their life. It’s considered a sign of success and a good investment, but it’s also a symbol of security. However, things change, and not all financial gurus agree that homeownership makes sense for everyone.
Keep reading for a look at why these experts suggest that the financial commitment and lifestyle changes involved with owning a house might not be the best choice for everyone — and why you might want to rethink the path to homeownership.
Dave Ramsey: Advocating for Financial Readiness
This one is likely to come as a surprise. Dave Ramsey is a household name in personal finance, known for his passionate advocacy of living debt-free. While he acknowledges that homeownership can be a worthwhile long-term investment, he also posted on X, “Renting is not a waste of money.”
Ramsey argued that renting buys you time until you’re financially prepared to own a home: “Just because a mortgage payment might be less than rent doesn’t mean it’s the right time for you to buy a house.”
Ramsey also pointed out that your mortgage isn’t your only expense. “There are a lot more expenses that come with homeownership than the monthly payment. Maintenance, HOA fees, homeowner’s insurance, fixing or replacing a busted HVAC, etc… When the home is yours, all of those expenses are up to you. … Until you’re actually ready to buy, renting is never a waste of money.”
Financial Samurai: The Importance of Financial and Personal Readiness
The Financial Samurai blog, run by Sam Dogen, often explores the trade-offs between homeownership and renting, typically focusing on individual circumstances and financial goals. Dogen wrote that the decision to buy a home shouldn’t be based on financial readiness alone, but it should also reflect lifestyle compatibility: “The most important factor in deciding on buying a home is whether you love the environment you are in.”
According to Dogen, the long-term commitment required by homeownership makes it something to put off until you’ve found a stable career and a place you could see yourself living in for the long term. Until then, renting offers the flexibility to relocate or adapt to changing life circumstances without the burden of property ownership.
Tim Ferriss: Embracing Flexibility and Minimalism
Tim Ferriss is best known for a minimalist take on life and a somewhat unconventional approach to personal finance. His take on why renting may be better than owning a home may not be as surprising as Ramsey’s opinion, and his reasoning makes a lot of sense.
Like Dogen, Ferriss argued that renting allows for greater flexibility, which puts you in a better position to pursue different opportunities, no matter where they might take you.
In a post on X, he used the example of his struggles with an unsold house he owned in San Jose, California before moving to San Francisco: “To sell would have meant a $150,000 loss. … For months, friends pressured me to rent it, emphasizing how I was flushing money down the toilet otherwise. … Even with a property management company, regular headaches and paperwork ensued.”
For Ferriss, the hidden costs and challenges of owning a home in a city he didn’t want to live in weren’t worth the nominal upside of rental income.
He ultimately decided his time and effort was better spent somewhere else: “If I’m ‘losing’ money via the mortgage payments on an empty house, do I really need to cover it by renting the house itself? No, I decided. I could much more easily create income elsewhere.”
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