Finance industry professional says young people who are still finding their financial bearings should avoid buying houses altogether
While home investment volume in Canada’s most active real estate markets has steadily increased in the past few years, a finance industry professional said that young people who are still finding their fiscal bearings should avoid buying houses altogether.
In Libby Kane’s report for Business Insider, certified financial planner and XY Planning Network co-founder Alan Moore noted that a significant portion of his professional time is spent talking young adults out of buying residential properties in the present climate.
“Homeownership is a good way to really screw up your finances,” Moore said. “Now, I know it's the American Dream and I know that we've been told that buying a home is cheaper in the long run than renting — but honestly, it’s not always true,” Moore said
He explained that a non-investment home (especially in overpriced Vancouver and Toronto) is a somewhat difficult asset to sell, and the lack of mobility inherent in settling down doesn’t help matters.
“Whenever you want to chase a new job opportunity (or you get laid off and you need to downsize), or you want to move to a different state or life takes an unexpected turn in some way, homeownership tends to tie us down quite a bit,” Moore said.
Self-made millionaire Grant Cardone agreed with the assessment, adding that since a utilized home does not yield revenue every month, it isn’t “a good deal if you have to feed it constantly.”
“Buying a house is for suckers,” Cardone said.
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Authorities should consider stronger steps re: housing bubble
In Libby Kane’s report for Business Insider, certified financial planner and XY Planning Network co-founder Alan Moore noted that a significant portion of his professional time is spent talking young adults out of buying residential properties in the present climate.
“Homeownership is a good way to really screw up your finances,” Moore said. “Now, I know it's the American Dream and I know that we've been told that buying a home is cheaper in the long run than renting — but honestly, it’s not always true,” Moore said
He explained that a non-investment home (especially in overpriced Vancouver and Toronto) is a somewhat difficult asset to sell, and the lack of mobility inherent in settling down doesn’t help matters.
“Whenever you want to chase a new job opportunity (or you get laid off and you need to downsize), or you want to move to a different state or life takes an unexpected turn in some way, homeownership tends to tie us down quite a bit,” Moore said.
Self-made millionaire Grant Cardone agreed with the assessment, adding that since a utilized home does not yield revenue every month, it isn’t “a good deal if you have to feed it constantly.”
“Buying a house is for suckers,” Cardone said.
Related Stories:
B.C. supports housing vacancy tax in Vancouver to assist with rental shortage (Real-Estate-Tax)
Authorities should consider stronger steps re: housing bubble
