James Altucher offers six reasons why buying a house makes no sense financially. Here’s the best one:
Cash Gone. You have to write a big fat check for a downpayment. “But it’s an investment,” you might say to me. Historically this isn’t true. Housing returned 0.4% per year from 1890 to 2004. And that’s just housing prices. It forgets all the other stuff I’m going to mention below. Suffice to say, when you write that check, you’re never going to see that money again. Because even when you sell the house later you’re just going to take that money and put it into another downpayment. So if you buy a $400,000 home, just say goodbye to $100,000 that you worked hard for. You can put a little sign on the front lawn: “$100,000 R.I.P.”
Nearly convincing. . . .