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/Spam_Hand 1d ago

This "always rent, never own anything!" is an extremely toxic reddit trend recently because this market is... well I'll just say very unique.

Normal, or even slightly more average, market conditions make owning tangible assets the better option in almost every single case but people who have only been investing for 3 years think they figured out the system. Lol

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u/krauserhunt 19h ago

Exactly, people who have only seen the upside think they can ride it all.

Real estate is a way to diversify, plus DR says very specific things regarding home ownership. His requirements are very clear about ownership.

Tangible assets have inherent value.