Hala Taha is putting common money beliefs to Sacks for a quick verdict. This one was "buying a home is always smarter than renting". Sacks adds that it depends on your finances and where you would buy, and that maintenance and renovation eat most of the resale profit.
100%. Yeah. You definitely should have credit cards.
Buying a home is always smarter than renting.
Disagree. I'm a millionaire. I rent. I think that it's very dependent on your financial situation and also where you're going to buy. So like in a place like Manhattan, if I rent an apartment and I invest that down payment money in the stock market, I'm going to make much more. And if I buy an apartment and then try and resell it for profit, which by the way, what profit by the time that you take out the dishwasher that you had to replace and the HVAC and all the maintenance and the decorating and the renovation and the this and the that. When you actually sell the place, it's not much money left over. So I really, really believe in renting. I think you get amazing flexibility. I don't think that it sacrifices this idea of home. I think a lot of people think that in order to be an adult, you have to own your home. That's not true.
What about the psychological safety of owning a home? Like, especially like for me, like I feel like when I'm 65 or 70 or 10, I really want to make sure that like I have a home that's paid for. So like if anything happens, like at least I have shelter.
Something that I think about a lot with money is, you know, that's when I talk in the book, I talk about like your money relationship for when you're a child. Like that's the first part of it. And yes, you can heal that, but we're also all carrying things that make us feel safe or not safe. And so if owning a home really makes you feel safe, even if it's maybe not the right financial situation, you should do it. Yeah. You just have to make sure that you're also investing in the stock market because you can't look at your domicile as your ticket to financial freedom and retirement. Yes. You can own a home, but then you also need to be investing because that is what is actually going to pay for your retirement. Yeah.
It's like be ready to put down a down payment while you still have money available for investing and saving. It's like maybe you don't need to buy a home at 30 years old. Maybe you can buy a home at 40 years old.