Millionaire couple: Got rich by NOT BUYING A HOUSE
First of all ‘renting’ and ‘investing’ is NOT everybody’s cup of tea. If you do not know how to invest, and are not willing to learn you are better off buying a house, AND repaying the loan as soon as possible.
If you rent and blow all the money on lifestyle expenses – it is an amazingly stupid thing to do.
If you rent and ‘save’ all the money in banks, ppf, LiC Policy, chit funds, etc. it is another amazingly stupid thing to do.
If you rent and invest smartly in a combination of good equity and mutual funds, you are being sensible.
well I have been saying this for a long time. People who come from a poor background and have seen their parents struggle rush to buy a house. It gives them some ‘satisfaction’ that they own that place.
Those who come from reasonable backgrounds succumb to peer and family pressure…
see how this couple got rich. Seriously rich.
http://www.cbc.ca/news/business/house-investment-wealth-1.3716641
Amogh Bapat
Subra,
Its a nice story. While the principle stays and sounds great, do you know any equivalent story closer home?
Parag
I dont own a house, am not retired yet, but with a combination of prudent saving and sound investing , I have enough in MF’s, Direct equity and Bonds to retire if I choose to. Renting at 2 % of property value is a very obvious choice to me, especially in Bangalore where there is no guarantee that the property one buys will stay “legal”, especially when the authorities use maps drawn in 1905 to determine legality !