{"id":13444,"date":"2026-01-18T12:48:06","date_gmt":"2026-01-18T12:48:06","guid":{"rendered":"https:\/\/microvibenews.com\/?p=13444"},"modified":"2026-01-18T12:48:06","modified_gmt":"2026-01-18T12:48:06","slug":"if-you-want-to-be-financially-independent-at-a-young-age-dont-buy-a-house-serial-investor-says","status":"publish","type":"post","link":"https:\/\/microvibenews.com\/?p=13444","title":{"rendered":"If you want to be financially independent at a young age, don\u2019t buy a house, serial investor says"},"content":{"rendered":"

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Considering home prices are 50% higher than before the pandemic, mortgage rates remain stubbornly high in the 6% range, and everything feels more expensive thanks to inflation and tariffs, home ownership feels largely out of reach for many younger Americans.\u00a0<\/p>\n

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But one serial investor says that opting for renting instead of home ownership may not be as bad of an idea as some people think, despite it being the quintessential American Dream.<\/p>\n

\u201cIf your goal is to become financially independent at a young age, you probably don\u2019t want to go buy a house\u2014but it\u2019s a very controversial thing to say,\u201d JL Collins told The Diary of a CEO <\/em>podcast in an episode published Jan. 12.\u00a0<\/p>\n

Collins, the best-selling author of Pathfinders<\/em> and The Simple Path to Wealth<\/em>, said the reasoning is simple: Buying a home \u201cdramtically inflate[s]\u201d your cost of living. While your mortgage payment and rent payment may be similar on paper, owning a home ends up costing more in the long run and comes with unexpected expenses\u2014often referred to as the \u201chidden costs\u201d of homeownership, like insurance, repairs, and updates.\u00a0<\/p>\n

\u201cYou have the expenses of maintaining it, paying the taxes on it, blah, blah, blah,\u201d he said. \u201cIf you stay in an apartment that is just enough to meet your needs\u2014which, by the way, is what my daughter has done and continues to do\u2014your costs will be lower.\u201d<\/p>\n

In fact, a LendingTree study also published this week shows renting is cheaper than owning in every large U.S. metro, with U.S. homeowners paying 36.9% more a month on their mortgage payment than renters. To put that in perspective, the median monthly gross rent was $1,487 in 2024, according to LendingTree, while the median monthly housing costs for homeowners with a mortgage was $2,035. That\u2019s nearly $550 more per month for owning a home, amounting to a difference of more than $6,500 annually.<\/p>\n

And that cost difference makes buying a home just another \u201cexpensive indulgence,\u201d Collins argued.<\/p>\n

\u201cPeople typically buy the most house they can possibly afford. The industry drives them that way,\u201d Collins said. \u201cYou\u2019re going to wind up with a house that\u2019s going to be a burden. You are not buying it from a position of strength. You are stretching to buy it. You are borrowing the most money a bank\u2019s willing to give you.\u201d<\/p>\n

To be sure, Collins would know about the costs of home ownership\u2014he\u2019s owned homes for most of his adult life, he said. And on top of a mortgage, homeowners should expect paying for furniture, new appliances, landscaping, taxes, and maintenance.\u00a0<\/p>\n

\u201cThe list is endless,\u201d he said. \u201cYour mortgage is just the starting point.\u201d<\/p>\n

Matt Schultz, LendingTree\u2019s chief consumer finance analyst, said in a statement shared with Fortune <\/em>he understands those figures can be discouraging for people hoping for home ownership.<\/p>\n

\u201cSome people are becoming resigned to the fact that they\u2019ll never be able to own a home,\u201d he said. \u201cThat sort of decision has massive ramifications, not just for individuals but for the economy as a whole. Unfortunately, however, that doesn\u2019t seem likely to change anytime soon.\u201d<\/p>\n

That\u2019s in line with what other housing market experts and economists have predicted about the housing market for this year. While mortgage rates might drop slightly, the hidden costs of home ownership remain\u2014and home prices aren\u2019t going to drop enough to make a significant difference.<\/p>\n

According to Realtor.com data shared with Fortune<\/em>, at least one of three things would need to happen to make buying a house in the U.S. more affordable for the average person: Mortgage rates would need to fall to 2.65%; median household income would need to rise by 56%; or home prices would need to decline by 35%. Each of these scenarios is unlikely to happen.<\/p>\n

\u201cWe\u2019re in a tough spot,\u201d Max Slyusarchuk, CEO of A&D Mortgage, previously told Fortune<\/em>.. \u201cThe moment you make strides in any of these factors, what happens? More people are in the market buying and selling homes, which in turn increases the demand, which raises prices back up.\u201d<\/p>\n<\/div>\n

#financially #independent #young #age #dont #buy #house #serial #investor<\/p>\n","protected":false},"excerpt":{"rendered":"

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