Why Your House is a Terrible Investment - Interview with James Collins from jlcollinsnh.com

Today’s show topic is real estate and we’ll be discussing why your house is a terrible investment, how to do a proper rent vs. own calculation, and other wealth building topics with our special guest, James Collins. It’s certain to be challenging, controversial, and, I hope, appropriately radical.

Please listen to the entire episode to understand what we mean when we say that your house is a terrible investment! 🙂

James got his start selling flyswatters door-to-door and picking up empty pop bottles from the side of the road at eight years old. Since then, he’s earned his living as a soda jerk, Busboy, dishwasher, order-puller, grocery bagger, stock clerk, produce clerk and gas station pump jockey, a Mail clerk, ground man for a tree crew, landscaper, ad agency founder, account executive, ad space salesman, investment officer, entrepreneur, consultant, sales trainer, speaker, writer, radio talk show host, and a publisher.

Today, he is officially retired–sort of–but from time to time he shares his wisdom with the world over at www.jlcollinsnh.com in addition to sitting on a couple of corporate boards for small, entrepreneurial companies that he finds interesting.

Resources for today’s show:

How to do a Rent vs. Buy Calculation:

  1. Calculate your opportunity cost for the money (what it would be earning if you don’t spend on the house)
  2. Calculate the utility costs for each
  3. Calculate the maintenance/repairs/insurance costs for buying
  4. Calculate the taxes for buying
  5. Compare the figures.  Read this post again for an example.

There are various rent vs. buy calculators available.  There usually too complicated, but here’s a pretty one from the New York Times.  Generally though, you need to use the advanced settings to truly compare them…better to use Jim’s calculations first.

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