ways to save money
Question
how come celebrities "rent" homes instead of buying and "investing"?
i was just wondering why it is that middle class families are pushed to "buy" and stop "wasting" money on rent, but then celebrities who have lots of money just rent homes instead of buying and "investing"? are you really investing when you buy a home? because the way i see it, i could pay $1200 a month for a nice bachelor condo and save $1000 a month OR i could buy a nice bachelor condo and pay $2400 a month for my mortgage without saving a penny because i wouldn't be able to afford to save with a mortgage. so how is buying really better for me financially?
5 months ago - 2 answers
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I would disagree with your premise. Most celebrities own their homes and do not rent. Owning a home versus renting is cheaper in the long run. I am going to guess that the two are equal in cost after about 10-12 years. Beyond that ownership is cheaper plus you will have equity value in the home versus nothing in the rental. I am also going to disagree with your figures of $1000 versus $2400. No landlord could afford to own a rental property with a $1400/month negative cash flow (unless your talking about a property that rents at $50,000/month or more). They would either sell it or walk away.
by frak1a12345
5 months ago
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Other Answers
My guess its because they don't always stay in the same place for very long, and it's not practical to buy everything they live in. They would be paying taxes on quite a bit of property.
by Allison- 5 months ago