[by Greg Perry]
I’ve discussed this on Facebook and elsewhere. I came to its conclusion earlier this year when Jayne and I sold our country estate to move to the city to take care of my elderly Mother.
Pro Tip: Get the audiobook version because Mr. Cardone adds tons more info as he reads his book to you.
I’m quickly coming to the conclusion that owning a (non-rental income) home is not an asset but a liability.
I don’t want to buy another home to live in now. Or ever.
Only Buy Money-Making Real Estate
Owning places that others rent from you is wise (if you have the knack or are open to wealth and want to get the knack) (I obviously have the knack as you see from my book below).
Pro Tip: Multi-family places are wiser than single family homes for rentals.
But renting a home where you want to live in seems wiser every day over buying one (a liability).
Along those same lines, tossing the keys back to a dealer every two years when a car lease ends is beginning to seem wiser than car ownership to me also. I’ve been a long-time proponent of owning and then keeping a vehicle for long time (even if that means you bought it new) and we’ve followed that pattern for most vehicles we’ve purchased whether we bought them new or used.
But now with Uber, Lyft, and self-driving vehicles probably coming sooner than we expect, owning a car for the long term doesn’t seem as wise as before. Tossing the keys back and leasing another in 2-3 years, one newer with improved safety and up-to-the-minute tech features seems like the wise move now. It may not return as much on your cost as owning the same vehicle for a decade. But with a vehicle, I think there’s more to consider now than there used to be even five years ago.
Full Disclosure: Given our Amazon business, and the fact we run it through our own corporation, it helps that we can deduct the cost of the lease when we use a leased vehicle for business. Which is what we’d almost always use it for. That legitimate write-off is lucrative to me financially.
Being able to move to a safer town or one more appropriate to your life and/or business desires at the end of a lease term seems like a no-brainer to me now.
So does a car lease.