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Renting a home can make you rich
The Wealthy Renter: How to Choose Housing That Will Make You Rich
By Alex Avery
$19.99 | 189 pages
Who it’s for: Everyone.
More specifically: Those trying to decide between buying and renting their home.
Does it bust any myths?: Yes, that renting is just throwing your money away. Surely owning beats renting? No, the author argues you don’t have a better chance of growing your wealth by owning your own home.
Why we like it: It shows renters a simple way to replace bricks and mortar with superior investments.
What’s surprising? That the principal residence capital gains exemption is hugely overrated and the stock market has beaten housing as an investment over the past 25 years.
Action item: Consider renting over buying and ignore marketing messages to do otherwise.
Key takeaway: “The secret to renting is in what is done with the difference between what a homeowner spends on housing and what a renter spends.” A simple forced savings through a pre-authorized dividend stock plan or other investment plan will reap great rewards.