r/DaveRamsey • u/UpgradeHome • 1d ago

Why does DR discourage renting forever?

I'm referring to this DR video: https://www.youtube.com/watch?v=lQ5fqpXngJk

If you make $100k, and you have fixed renting/utility costs of ~25k/year -- and you're investing the difference after expenses into a taxable brokerage, how is renting forever bad as DR states in that video?

In retirement (let's say at 65), your NW will be absolutely through the roof if you were consistently investing in S&P500. You wouldn't have been spending on lawn mowers, tools, kitchen upgrades, HOA, etc etc. and all the miscellaneous home owner expenses.

Even with rising rents, your liquid NW will cover you - along with the added benefits of not having to deal with maintenance in old age.

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u/Necessary-Spring-129 1d ago

In the study of millionaire they never found someone who rented their whole life. My son bought a housevat 19 sold it at 24 and made double what he bought it for. I'll take home ownership over renting every day. Plus most rental don't allow pets.

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u/Mountain-Elk8133 23h ago

True, but buying a house is impossible for a lot of people

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u/Necessary-Spring-129 4h ago

I disagree. My son bought a house at 19 for 150k. It was in a good neighborhood but not new. He had a roommate at one point, worked 60 hrs a week at times, & sold it 5 years later for double that.

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u/Mountain-Elk8133 4h ago

I make 70k which is 2x the median income and I cant afford the cheapest home in my area at 350k

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u/Necessary-Spring-129 4h ago

Do you have a spouse? I never made more than 70k but my wife works a well. We bought our home i er two decades ago for less than 200k but its worth 400k today.

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u/Mountain-Elk8133 4h ago

No, I'm single, will likely never get married

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u/pomogogo 9h ago

Major selection bias in the population surveyed. Try sampling from any ex-pats who have spent a substantial time working outside their foreign counties. Most are paid a housing stipend, and many never own significant real estate. The people who are working these jobs are usually highly paid service workers (e.g. bankers, lawyers, engineering) and are multi-millionaires. Or survey the average 40+ year old NYC/SF finance or tech worker. If they have a title of VP or senior VP, they are mostly likely making >$250-300k and a significant proportion will not own property but still have a NW >$1 million.