Transcript: Rent, Don't Buy! | Sep 26, 2016

Steve sits in the studio. He's slim, clean-shaven, in his fifties, with short curly brown hair. He's wearing a gray suit, a lilac shirt, and a patterned lilac and blue tie.

A caption reads "Rent, don’t buy!"

The caption changes to "Twitter: @spaikin and @theagenda."

Steve says CONVENTIONAL WISDOM
SAYS IF YOU CAN AFFORD TO BUY A
HOME YOU SHOULD. RENTING...
SO IT'S SAID... SIMPLY PAYS
SOMEONE ELSE'S MORTGAGE.
LEAVING YOU WITH NOTHING TO SHOW
FOR YEARS OF PAYMENTS.
ALEX AVERY QUESTIONS THAT WISDOM
IN HIS NEW BOOK.
IT'S CALLED THE WEALTHY RENTER.

A picture of the book appears. A blueprint of a property illustrates the cover.

Steve says HOW TO CHOOSE HOUSING THAT WILL
MAKE YOU RICH.
HE IS A REAL ESTATE ANALYST AT
CIBC WORLD MARKETS AND ALEX
AVERY JOINS US WITH MORE.
YOU ARE REALLY SPITTING INTO THE
WIND WITH THIS ONE, AREN'T YOU.
SO WE'RE GOING TO GET INTO THIS.
YOU DESCRIBE PEOPLE WHO ADVOCATE
HOMEOWNERSHIP AS PART OF A CULT.
HOW SO?

The caption changes to "Rent, don’t buy! Why?"

The caption changes to "Alex Avery. CIBC World Markets. Author of ‘The wealthy renter’."

Alex is in his forties, clean-shaven and with short wavy light brown hair. He wears a lilac shirt and a black blazer.

Alex says WELL, HOMEOWNERSHIP IS VERY,
VERY HEAVILY PROMOTED BY ALL
SORTS OF PEOPLE: YOUR PARENTS,
YOUR FRIENDS, YOUR FAMILY T.
REAL ESTATE AGENT THE, LENDERS,
EVEN THE GOVERNMENT GETS INTO
THE PROMOTION OF HOMEOWNERSHIP.
AND IT'S QUITE AMAZING WHEN YOU
ACTUALLY LOOK INTO ALL OF THE
DETAILS OF HOW THIS CONVENTIONAL
WISDOM COMES ABOUT.
IT'S ACTUALLY A WELL
ORCHESTRATED PROMOTIONAL
CAMPAIGN TO GET CANADIANS TO BUY
HOMES.

Steve says BUT MAYBE ALL OF THOSE
PEOPLE THINK IT'S A GREAT IDEA
TO BUY HOMES BECAUSE IT'S A
GREAT IDEA TO BUY HOMES.
YOU DON'T AGREE?

Alex says I THINK EVERYONE'S UNIQUE.
I THINK HOUSE SOMETHING A LOT
LIKE PRESCRIPTION DRUGS WHERE
IT'S UNIQUE TO THE INDIVIDUAL.
AND EVEN FOR THAT INDIVIDUAL, AT
DIFFERENT POINTS IN YOUR LIFE
YOU MAY HAVE DIFFERENT NEEDS.
AND I THINK THAT IF YOU HAVE A
PUBLIC DIALOGUE THAT HAS ONLY
ONE ANSWER FOR EVERYONE, THAT'S
A BIG PROBLEM.
SO I WROTE THE WEALTHY BARBER...
OR THE WEALTHY RENTER TO COUNTER
THAT, TO TELL THE OTHER SIDE OF
THE HOUSING STORY.

Steve says YOU DEFINITELY WANTED TO
PLAYOFF THE WEALTHY BARBER,
DIDN'T YOU.

Alex says I DID BUT THAT WAS DAVID
CHILTON.

Steve says THAT'S WHERE THE TITLE
COMES FROM.
IF RENTING IS A GOOD SOLUTION
YOU RENT, THEN.

Steve says THAT'S NOT THE CASE.
I AM A HOMEOWNER.

Steve says DESPITE EVERYTHING.

Alex says I AM.
LIKE I SAID FOR EVERYONE THE
ANSWER IS DIFFERENT AND IT
DEPENDS ON YOUR CIRCUMSTANCES.
I THINK, IN FACT, WHILE THIS IT
MIGHT ON THE IS YOUR THAT ME NOT
BEING A RENTER UNDERMINES THE
CREDIBILITY OF THE ARGUMENT I
THINK IT MAKES IT THAT MUCH MORE
POWERFUL IN THAT I AM NOT A
RENTER I'M A HOMEOWNER AND I'M
STILL ADVOCATING THAT I THINK
RENTING MAKES A LOT OF SENSE AND
IT'S MALIGNED.

Steve says WHY DON'T YOU RENT?

Alex says WE BOUGHT A HOUSE A NUMBER OF
YEARS AGO.
WE HAD CHILDREN AND WE WERE IN
THE FINANCIAL POSITION WHERE WE
COULD AFFORD TO BUY A HOME AND
SO WE DID.

Steve says IS THIS IS NOT THE
CASE AS WE SUGGESTED IN THE
INTRO THAT PAYING RENT IS
BASICALLY PAYING SOMEONE ELSE'S
MORTGAGE AND INVESTING IN
SOMEONE ELSE'S EQUITY AS OPPOSED
TO YOUR OWN.
IS THAT NOT THE CASE?

Alex says IT'S A MISCONCEPTION.
YOU CERTAINLY ARE PAYING RENT TO
OCCUPY A SPACE FOR A GIVEN
PERIOD OF TIME.
BUT IT'S ALSO A MISCONCEPTION
THAT RENTERS PAY RENT TO THE
BANK... HOMEOWNERS PAY RENT TO
THE BANK IN TERMS OF INTEREST.
AND THEN YOU CAN TAKE THE MONEY
THAT YOU HAVE TIED UP IN THE
HOUSE AND INVEST IT IN SOMETHING
ELSE.
THAT CAN GENERATE AN INCOME THAT
YOU COULD LIVE OFF OF.

Steve says OKAY.
BUT THE FOLLOW UP IS, IF YOU ARE
PAYING A MORTGAGE, ADMITTEDLY
WITH SOME RENT TO A BANK, YOU
WOULD AT LEAST HAVE SOME EQUITY
AT THE END OF THE DAY.
YOU HAVE SOMETHING TO SHOW FOR
IT.
IF YOU ARE RENTING YOU ARE
HANDING THAT OVER TO SOMEBODY
ELSE AND AT THE END OF YOUR
RENTING DAYS YOU HAVE NOTHING TO
SHOW FOR IT.

Alex says THAT'S TRUE, THAT'S TRUE.

Steve says WHY IS THAT A SMARTER
WAY TO GO?

Alex says IT'S NOT AN UNQUALIFIED
SMARTER WAY TO G THERE ARE
ALWAYS QUALIFICATIONS AND THE
ONE WITH HOUSING IS THAT ALONG
WITH BUYING A HOUSE YOU GET A
MORTGAGE AND A MORTGAGE IS A
FORCED SAVING PROGRAM.
YOU CAN'T HAVE NO FINANCIAL
DISCIPLINE AND SIMPLY RELY ON A
MORTGAGE.
BECAUSE EVEN WITH A MORTGAGE YOU
MAY NEVER ACCUMULATE ANY
FINANCIAL WEALTH.
BUT YOU CAN REPLICATE A FORCED
SAVINGS PROGRAM IN A LOT OF
DIFFERENT WAYS AND HOMEOWNERSHIP
JUST HAPPENS TO BE ONE OF THEM.
AND GIVEN THAT IT'S JUST A WAY
TO FINANCE AN INVESTMENT YOU CAN
DO IT WITH A HOUSE OR YOU CAN DO
IT WITH OTHER THINGS.
AND I, YOU KNOW, IN THE BOOK I
POINT OUT THAT HOUSE PRICES ARE
HIGHER THAN THEY'VE EVER BEEN IN
CANADA. CANADIANS ARE BORROWING
MORE MONEY TODAY TO BUY THEIR
FIRST HOME THAN THEY EVER HAVE
IN THE PAST.

Steve says BECAUSE IT'S SEEN AS A
SAFE INVESTMENT.

Alex says AND IT'S HEAVILY PROMOTED.

Steve says OKAY.
BUT IT IS A SAFE INVESTMENT,
ISN'T IT?

Alex says IT DEPENDS ON THE MARKET.
AND THERE ARE A LOT OF
QUALIFICATIONS THERE.
I WOULD SAY THAT HOUSE PRICES
BEING HIGHER THAN THEY EVER HAVE
BEEN AND MORE DEBT FOR CANADIANS
THAN WAIF EVER HAD.
I THINK, YOU KNOW, MOST OF THE
PUBLIC FIGURES IN CANADA HAVE
COME OUT AND SAID THAT THEY'RE
CONCERNED ABOUT THE HOUSING
MARKET.
I THINK THERE'S GOOD REASON TO
BE CONCERNED.

Steve says IN TORONTO IS IT A
GOOD INVESTMENT?

Alex says WELL, IN THE BOOK I GO
THROUGH EACH OF THE DIFFERENT
MARKETS.
I TALK ABOUT VANCOUVER, I TALK
ABOUT TORONTO, CALGARY,
EDMONTON, MONTREAL AND OTTAWA.
AND WHAT YOU CAN SAY YOU LOOK AT
VANCOUVER, TORONTO AND MONTREAL,
ALL THREE OF THOSE MARKETS HAVE
THE CHARACTERISTICS IN PLACE TO
BE EXPENSIVE HOUSING MARKETS.
SO JUST BECAUSE HOUSE PRICES ARE
HIGH DOESN'T MEAN THAT THEY'RE
GOING TO COME DOWN.
BUT IT ALSO DOESN'T GUARANTEE
THAT THEY WON'T.

Steve says LET'S TAKE A LOOK AT
THIS CURVE HERE.
THE CURVE IS... SHELDON WANT TO
PUT THIS UP?
TORONTO REAL ESTATE PRICES.
THE ANNUAL AVERAGE OF RESIDENTIAL
SALES.

A double axis chart appears on screen with the title "Toronto Real Estate Prices. Annual Average of Residential Sales. The vertical axis shows the amount in Canadian Dollars and the horizontal axis shows the years from 1986 to 2016. The curve shows a rise starting at 100,000 dollars from 1986 to 1989, then a small low and, after 1996, a steady rise to 700,000 dollars.

Steve says IF YOU OWN A HOME THAT IS
CERTAINLY THE DIRECTION YOU WANT
TO SEE THAT CURVE GOING IN.
NOT IF YOU WANT TO GET INTO THE
MARKET BUT CERTAINLY IF YOU OWN
A HOME.
SO IF WE'RE GOING TO BE HAVING
PROBABLY 3.5 MILLION PEOPLE
MOVING INTO THE GREATER TORONTO
AND HAMILTON AREA OVER THE NEXT
20 YEARS, DOES THAT CHART AND
THE DIRECTION THAT CURVE IS
GOING IN... UP AND UP AND UP AND
UP... SUGGEST THAT IF YOU CAN
AFFORD IT, BUYING A HOUSE IS
STILL A GREAT INVESTMENT?

The caption changes to "Rent, don’t buy! Resist the temptation."

Alex says I DON'T THINK IT'S THAT
SIMPLE.
THERE ARE ALL SORTS OF FACTORS
THAT GO INTO THAT CURVE.
FOR INSTANCE THE GREENBELT
INTRODUCED IN 2004 HAS A VERY
MATERIAL IMPACT ON HOUSE PRICES.
GOVERNMENT POLICY IN GENERAL HAS
A VERY, VERY SIGNIFICANT IMPACT
ON HOUSE PRICES.
AND TO THE EXTENT THAT YOU ARE
HEARING FROM GOVERNMENT SOURCES
TODAY THAT THEY'RE CONSIDERING
TAKING ACTION TO CHANGE POLICIES
ARNOLD HOUSING, I DON'T THINK
THAT YOU CAN RELY ON THAT TREND
CONTINUALLY.
AND WHEN YOU LOOK AT THINGS LIKE
THE GREENBELT, YOU KNOW, IT WAS
BROUGHT IN FOR A NUMBER OF
REASONS.
AND I DON'T THINK IT'S GOING
AWAY BUT THAT DOESN'T MEAN THAT
YOU COULDN'T SEE OTHER POLICIES
CHANGE THAT COULD SIGNIFICANTLY
IMPACT HOUSE PRICES.

Steve says LET ME MAKE SURE I
UNDERSTAND THIS.
THE GREENBELT WAS BROUGHT IN.
THAT CHUNK OF LAND NORTH OF THE
CITY... NORTH OF THE CAPITAL
CITY WHERE NO HOUSING
DEVELOPMENT ON THAT LAND.
GOING TO PROTECT IT FOR FARMLAND
AND OTHER PURPOSES BUT NOT
HOUSING DEVELOPMENT.
AND IN YOUR VIEW, DID THAT
CREATE A SORT OF AN ARTIFICIAL
SCARCITY OF PROPERTY AND,
THEREFORE, SENT HOUSING PRICES
HIGHER THAN THEY MIGHT OTHERWISE
HAVE BEEN?

Alex says I WOULD SAY IT ABSOLUTELY HAD
THAT EFFECT.
THERE WAS A LOT OF LAND
AVAILABLE FOR DEVELOPMENT AND
THEN ONE DAY IT WASN'T.
IT HAD THE EFFECT OF MAKING
TORONTO INTO ALMOST AN ISLAND.

Steve says SO IF WE INTENSIFY
HOUSING DEVELOPMENT IN THE CITY
BELOW THE GREENBELT, SHOULDN'T
THAT COUNTERMAN THE EFFECTS OF
THE GREENBELT.

Alex says IT SHOULD.
BUT YOU WILL ALSO SEE PEOPLE
COMPLAINING ABOUT THE CONDOS
GOING UP.
WHO WANTS TO LIVE IN A
500-SQUARE-FOOT BOX IN THE SKY
AND THE ANSWER IS PEOPLE WHO
CAN'T AFFORD A 2,000 SQUARE FOOT
HOUSE ON THE GROUND.

Steve says SO WHO SHOULD RENT?

Alex says DIFFERENT CIRCUMSTANCES FOR
EVERYONE.

Steve says BUT NOT YOU, RIGHT.
YOU ARE MARRIED A COUPLE OF
KIDS.
YOU CAN AFFORD A HOUSE SO IT
MAKES NO SENSE FOR YOU TO RENT,
RIGHT?

Alex says I DON'T THINK THAT'S
NECESSARILY THE CASE.
WE HAPPEN TO OWN A HOUSE RIGHT
NOW, IF I CHOSE TO MOVE I MIGHT
AND RENTER.
ONE OF THE BIG DRAWBACKS IS THAT
THE TRANSACTION COSTS ARE VERY,
VERY HIGH FOR OWNING.
I THINK TODAY I'D BE HARDPRESSED
TO FIND A LOT OF PEOPLE WHERE IT
MAKES SENSE TO BUY HOMES.

Steve says MILLENNIALS WHO ARE
ABLE TO BUY A HOME, SHOULD THEY?

Alex says DEPENDS WHETHER OR NOT THEY
WANT TO HAVE THE LABOUR MOBILITY
TO PURSUE JOBS IN OTHER MARKETS.
THEY MAY HAVE A SITUATION WHERE
THEY'RE SINGLE.
YOU WOULDN'T WANT TO BUY A HOUSE
WITHOUT UNDERSTANDING HOW YOUR
LIFE IS LIKELY TO EVOLVE OVER
THE NEXT 5 AND 10 YEARS.
AGAIN, TRANSACTING ON HOUSING
THAT'S VERY, VERY EXPENSIVE AND
THE FLEXIBILITY OF RENTING IS
FABULOUS. I MEAN TODAY ONE OF
THE THINGS THAT I THINK IS OF
CONCERN IS THE ELEVATED LEVEL
OF PRICING... HOME PRICES
RELATIVE TO INCOMES ARE HIGHER
THAN THEY'VE EVER BEEN.
I THINK ONE OF THE GREAT THINGS
ABOUT RENTING IS THAT YOU AREN'T
TAKING ANY HOUSE PRICE RISK.

Steve says I KNOW WE TALKED
EARLIER ABOUT SOME OF THE
MYTHOLOGY ABOUT ALL OF THIS.
BUT IT SEEMS TO ME PART OF THAT
MYTHOLOGY INVOLVES THE NOTION
THAT ONCE YOU BUY A HOUSE YOU
HAVE SOME HOW ENTERED ADULTHOOD.
IT'S THE REAL DEAL ONCE YOU'RE A
HOMEOWNER.
WOULD YOU ADMIT THAT THAT'S A
CASE?

Alex says THERE ARE A LOT OF HUMAN
ELEMENTS TO HOUSING.
CERTAINLY PRIDE OF OWNERSHIP IS
ONE OF THOSE BIG THINGS.
I THINK GOVERNMENTS ARE VERY,
VERY KEEN ON PROMOTING
HOMEOWNERSHIP BECAUSE PEOPLE
ACTUALLY BEHAVE DIFFERENTLY ONCE
THEY BECOME HOMEOWNERS.
THEY TEND TO GO TO WORK ON A
MORE REGULAR BASIS.
THEY WORK HARDER BECAUSE THEY
HAVE A BIG MORTGAGE TO PAY.
THEY'RE MORE RESPECTFUL OF
PROPERTY BECAUSE THEY HAVE
SOMETHING AND THEY DON'T WANT
PEOPLE MESSING WITH THEIR THING
SO THEY DON'T MESS WITH OTHER
PEOPLE'S THINGS.
IT'S QUITE GOOD FOR SOCIETY BUT
IT DOESN'T NECESSARILY MEAN THAT
EVERYBODY SHOULD BUY A HOME.
AND I DON'T THINK THAT TODAY IS
ACTUALLY A FABULOUS TIME TO BE
BUYING A HOME IN CANADA'S
EXPENSIVE HOUSING MARKETS.

Steve says BECAUSE?

The caption changes to "Connect with us: @theagenda, tvo.org, Facebook, Youtube and Instagram."

Alex says BECAUSE HOUSE PRICES ARE
STRETCHED. DEBT IS HIGHER THAN
IT'S EVER BEEN.
AND IF YOU ARE ONE OF THOSE
PEOPLE WHO CAN BARELY AFFORD TO
GET INTO THE HOUSING MARKET
YOU'RE TAKING A BIG RISK.

Steve says AS YOU HAVE DESCRIBED
THE CONDITIONS THERE IS NO
REASON TO ASSUME THAT OVER THE
NEXT 20... LET'S SAY 5 OR 10
YEARS THAT THOSE CONDITIONS
WON'T PERSIST.
SO IF YOU CAN GET IN, WHY
WOULDN'T YOU GET IN?

Alex says WHY WOULD YOU PUT PAUL OF
YOUR EGGS IN ONE BASKET.
IF YOU LOOK AT ALL OF THE
INVESTMENT ADVICE THAT IS OUT
THERE, YOU KNOW, PROBABLY THE
MOST POPULAR AMONGST THE
FINANCIAL ADVISORY WORLD WOULD
BE THAT YOU WANT TO DIVERSIFY.
IF I WAS TO SAY TO YOU I THINK
THIS STOCK WILL GO UP.
I WANT YOU TO BORROW 20 TIMES
YOUR NET WORTH CULL' PAY IT OFF
OVER THE NEXT 25 YEARS LET'S
HOPE IT GOES UP.

Steve says OKAY.
LET'S PLAY THIS GAME HERE WE'LL
PLAY IT OUT.
BUYING A STOCK AND BUYING ARE
HOUSE AREN'T THE SAME THING.

Alex says TRUE.

Steve says A HOUSE HAS AN
EMOTIONAL CONNECTION.
WHERE YOU MIGHT GET RID OF A
STOCK OR 2 OR 5, YOU MIGHT LIVE
IN A HOUSE FOR 50.
CAN YOU MAKE THAT COMPARISON?
DOES THAT ANALOGY WORK?

Alex says I THINK WHERE IT BECOMES
PROBLEMATIC IS IF YOU HAVE IT AS
YOUR SOLE INVESTMENT.
IF YOU COUNT ON BUYING A HOME
BEING YOUR FINANCIAL SAFETY NET
I THINK THAT'S TOO HIGH A RISK
TO TAKE.
IF YOU LOOK AT ALL OF THE
CHARACTERISTICS OF HOUSING AS AN
INVESTMENT IT'S ACTUALLY A VERY
POOR INVESTMENT.
THE TRANSACTION COSTS ARE VERY,
VERY HIGH.
THE LIQUIDITY IS VERY, VERY LOW.
IT TAKE AS LONG TIME TO CLOSE:
WHAT IF YOUR KID IS HAVING
TROUBLE IN SCHOOL AND YOU DON'T
WANT TO MOVE SCHOOLS.
WHAT IF YOU DON'T WANT TO LEAVE
YOUR JOB.
THERE ARE A NUMBER OF
REASONS WHY YOU MIGHT NOT WANT
TO HAVE ALL YOUR EGGS IN ONE
BASKET.
PARTICULARLY ENTERING A MARKET
AT A HIGH RATE IN PRICING.

Steve says I CAN'T DISPUTE
ANYTHING YOU'RE SAYING.
BUT SOME HOW, THE EMOTIONAL
MYTHOLOGY AND POETRY AROUND
HOMEOWNERSHIP, I MEAN YOU ARE
KIND OF... AS I SAID OFF THE TOP
YOU ARE KIND OF SPITTING IN THE
FACE OF HUNDREDS OF YEARS OF OUR
UNDERSTANDING OF THE WAY THINGS
OUGHT TO BE.

Alex says I WOULDN'T SAY HUNDREDS OF
YEARS.
I WOULD SAY THAT THE MYTHOLOGY
AROUND HOUSING HAS BEEN AROUND A
LONG TIME BUT IT'S EVOLVED OVER
TIME.
AND I THINK ONE OF THE MOST
DANGEROUS THINGS ABOUT HOUSE
SOMETHING THAT MYTHOLOGY IN THE
SENSE THAT THE HOUSING CYCLE IS
A LONG CYCLE.
AND IT'S LONG ENOUGH THAT BY THE
TIME HOUSE PRICES ARE HITTING
ALL-TIME HIGHS AND PEOPLE ARE
VERY, VERY ENTHUSIASTIC AND
CONSENSUS SAYS THAT, YOU KNOW,
IF YOU CAN, YOU SHOULD BUY, IT'S
RIGHT AT THAT POINT WHEN THE
HOUSING MARKET TURNS.
AND WHEN IT DOES LIKE IT DID IN
THE U.S. IN 2006, THE RESULTS
CAN BE DEVASTATING.

Steve says HMM.
SHOULD THERE BE INCENTIVES IN
PLACE AS THERE ARE FOR
HOMEOWNERSHIP FOR RENTERS?

Alex says I WOULD SAY IF YOU WANTED TO
BALANCE THE MARKET ABSOLUTELY.
YOU LOOK AT THE GOVERNMENT OF
CANADA.
WE'VE GOT CMHC WHICH LOWERS THE
INTEREST RATE FOR HOME BUYERS.
YOU PAY NO TAXES ON CAPITAL
GAINS WHEN YOU SELL YOUR HOUSE.
YOU CAN BORROW MONEY OUT OF YOUR
RRSP TO BUY A HOUSE AND ONLY TO
BUY A HOUSE.
THERE ARE NO OTHER EXCEPTIONS.
YOU CAN GET YOUR LAND TRANSFER
TAX REIMBURSED AS A FIRST-TIME
HOMEOWNER THERE ARE NONE OF
THOSE ADVANTAGES TO RENTING.

Steve says AND YOU THINK THERE
SHOULD BE.

Alex says I AM NOT SURE WHETHER
NECESSARILY YOU NEED TO PROMOTE
REPRESENTING AS MUCH AS MAYBE
YOU SHOULD DIAL IT BACK ON
PROMOTING HOMEOWNERSHIP.

Steve says OKAY.
THE SCENARIO YOU PUT FORWARD A
MINUTE AGO WHERE IN THE UNITED
STATES THE MARKET WENT
RIDICULOUS AND THOUSANDS UPON
THOUSANDS OF PEOPLE HAD HOMES
UNDER WATER, THAT HAPPENED IN
THE STATES BECAUSE OF A PRETTY
SPECIFIC SET OF CIRCUMSTANCES
THAT REARED THEIR HEADS.
ALL OF THEM AT THE SAME TIME.
YOU HAVEN'T IN YOUR ANALYSIS
SEEN ANYTHING LIKE THAT
POTENTIALLY HAPPENING IN CANADA,
HAVE YOU?

Alex says NO, NO.
I THINK WE WERE MUCH MORE
RESPONSIBLE LENDERS IN TERMS OF
THE BANKS.
I THINK THAT THE HOUSING POLICY
HAS BEEN A LOT MORE RESPONSIBLE
AS WELL.
CMHC HAS DIED BACK A NUMBER OF
THE POLICIES THEY HAD LOOSENED
IN THE RUN UP TO THE U.S.
HOUSING.

Steve says NO ONE BUYS HOUSES
HERE FOR NO MONEY DOWN.

Alex says THAT'S A STUFF AT THE SAME
TIME TO MAKE OR TO SUPPORT.
IT'S... ON THE SURFACE, PERHAPS,
BUT WOMEN ANTICIPATE NOT SURE
THAT THERE ARE... NOT SURE THAT
THERE AREN'T PEOPLE THAT ARE
BORROWING THE REMAINDER OF THE
REQUIRED DOWN PAYMENT.
IT'S VERY DIFFICULT TO TELL.
AND, YOU KNOW, IT DOESN'T
NECESSARILY NEED TO BE A HOUSING
CRISIS IN THE STYLE OF THE U.S.
HOUSING DOWNTURN FOR IT TO BE A
DEVASTATINGLY POOR FINANCIAL
INVESTMENT FOR AN INDIVIDUAL.
IF YOU ARE BUYING A HOUSE AND
YOU'RE STRETCHING SO FAR THAT
YOU ARE GOING TO LIVE THE NEXT
25 YEARS HOUSE POOR AND IT TURNS
OUT THAT HOUSE PRICES DON'T GO
UP, THEN I THINK THAT'S A PRETTY
DEVASTATING IMPACT ON YOUR
LIFESTYLE.

Steve says SO AT THE END OF THE
DAY, DON'T DISCOUNT ARE YOU
RENTING.
THAT'S WHAT YOU'RE SAYING.

Alex says EXACTLY.

Steve says ALEX AVERY. THE
WEALTHY RENTER IS THE NAME OF
THE BOOK. HOW TO CHOOSE HOUSING
THAT WILL MAKE YOU RICH. THANKS.

Alex says THANKS, STEVE.

The caption changes to "Rent, don’t buy! Producer: Cara Stern @carastern."

Watch: Rent, Don't Buy!