billionaire Mark Cuban for his firm, ‘Prep Expert SAT & ACT Courses.’ The 27-year-old investor said, “I’m not interested in buying a home. I’d rather rent and invest the money I didn’t put down for the down payment, home insurance, property tax, all of the other costs and make 7%-10% in the stock market, or in other investments”.
Shaan Patel was thinking of purchasing a property in Philadelphia in 2018. He said, “Because I was following the conventional wisdom that ‘renting is throwing money down the drain’”. Patel likes to invest in stocks over real estate due to the time commitment and ease of access to the funds. He said, “For me, as a pretty busy person, I like my investments to be pretty passive and liquid”.
While assessing the advantages and disadvantages of house ownership, Patel read Kristy Shen’s lines “Quit Like a Millionaire.” He detailed the additional costs associated with the house ownership. He added, “I don’t think people take into account all of the costs of homeownership that are in addition to the mortgage. For example, property tax, home insurance, maintenance and repairs, HOA fees, and of course the interest on the mortgage itself”.
Patel put the money he would have spent on a house in a diverse portfolio of stocks. Along with stocks, Patel owns real estate investment trusts, which allow investors to indirectly participate in real estate by investing in a company that owns or funds income-generating real estate. Additionally, he is a venture capitalist, investing in other start-ups. Further, he allocates a modest amount of his wealth to Bitcoin.
