Quote:
Originally Posted by Ugly Bastard
Imagine you have $500,000 and no place to live. You find a house for $500,000 that you anticipate will increase in value about 5% yearly. You also have an idea for a business that you think you could make 30% yearly on. Clearly, in this scenario, it would make sense to put all your money towards the business and then just go find some apartment to rent.
I guess all I'm trying to illustrate is that renting is not a bad investment in any absolute sense. Sometimes it makes sense to "just" rent thus freeing up your money to make more money with which to buy a larger, kick-ass sometime in the future.
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But then again, we are talking about someone that is soon going to be pulling down $350,000 a year doing nothing at all with no start up costs. So he can certainly just go ahead and buy that house because he doesn't need money to grow his business.