Tuesday, September 30, 2008

Renting Makes More Financial Sense Than Homeownership

From Yahoo Finance:

Businesses are great investments while houses are poor ones, so I'd rather rent the latter and own the former.

I just knew it! I've previously made the case for renting vs. buying in favour of using a high-interest CMT earning 6% or more compounded quarterly as a wealth generation vehicle. The writer points out that houses provide zero real returns after inflation, while stocks consistently provide 7%, so it looks like I wasn't far off the mark!

Maybe a time will come when renters are afforded some respect yet!

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