You are asking good questions, however your original argument, that Americans don’t ask them because discussing money is taboo, is hardly correct. If you take a society where people openly discuss theirs and each other’s salaries, savings and budgets, all the same questions remain.
Oh, and as for the concept of ownership in general, it almost never makes sense unless you love both the concept of owning something and the thing you own. Renting a boat is cheaper and less time-consuming unless you sail daily. Tying your funds in real estate for non-business/investment/tax purposes only makes sense if working on your place brings you joy. Owning cars only makes sense if you are willing to drive an older model and/or like to tinker, otherwise leasing is cheaper and more flexible. Note that most other items on your list are not ownership: an insurance policy, donation, hired help etc. But that’s a side point.
as for the concept of ownership in general, it almost never makes sense unless you love both the concept of owning something and the thing you own.
I disagree. I think that ownership provides a number of significant benefits not all of which can be straightforwardly converted to money. One benefit, for example, is control over your property and the associated freedom to do with it what you want. Another benefit is reduction of risk in uncertain and turbulent times.
Another benefit is reduction of risk in uncertain and turbulent times.
Ownership of which things reduces risk, though? If you own a fishing boat, now you’re vulnerable to additional risk (damage to your boat, the constant threat of big expensive repairs - ‘a boat is a hole in the water you throw money into’), and you no longer have the resources you have spent on ownership of it up front rather than renting a bit at a time; those were resources that could have been a cushion against risk. If you spend $20k on a fishing boat & all its many expenses, you’re now down $20k and up on risk; if you keep your $20k, well, $20k buys a lot of protection.
A valid point. Ownership is not an unmitigated blessing :-D and there are certainly trade-offs in play.
I am not saying “you should always own if you can”, I’m just objecting to shminux’ “almost never makes sense”—I think it makes sense considerably more frequently than “almost never”.
Agreed on several of these, but not the car one. Cars are non-optional in most of the U.S. The value of having a paid-off one that you won’t lose if you find yourself unemployed for an extended time is considerable.
What I mean is that if you prefer (and can afford to) to drive a car that is no older than 4-5 years, it is cheaper and less hassle to lease it for that long than to resell it and buy a new model after that. Of course it is rarely a prudent course of action to not keep a car longer.
Owning a car can have a large advantage over leasing, if you are likely to keep the car a long time. An owned car can also become a second backup car, that it’s no big deal if it breaks down) if you get a newer one. Leasing two cars at once is a big waste of money.
Owning versus renting a home is not clear cut at all. Renting a house is a huge money pit unless you are frequently moving, and renting an apartment vs. owning a house is often not comparable in lifestyle. Owning a house gives you the property and flexibility, and can result in longer-term wealth building.
There is a lot of debate in America about whether or not we are still in a housing bubble, but it seems to be the general consensus that in at least some areas of the country, buying a house is probably not a good long term investment.
There is a lot of debate in America about whether or not we are still in a housing bubble
Do you, by any chance, mean the northern part of America that sometimes goes by the name of Canada?
In the USA, the pre-2008 housing bubble has certainly popped. Now, one can argue that there is another one inflating right now, but I haven’t seen many people make that claim.
There are other articles around that name various sets of large American cities that are maybe/probably bubbling, and California is often cited as being at the forefront of the bubble.
However, you are right, the claims are that we are in a new bubble, not the same old bubble.
You are asking good questions, however your original argument, that Americans don’t ask them because discussing money is taboo, is hardly correct. If you take a society where people openly discuss theirs and each other’s salaries, savings and budgets, all the same questions remain.
Oh, and as for the concept of ownership in general, it almost never makes sense unless you love both the concept of owning something and the thing you own. Renting a boat is cheaper and less time-consuming unless you sail daily. Tying your funds in real estate for non-business/investment/tax purposes only makes sense if working on your place brings you joy. Owning cars only makes sense if you are willing to drive an older model and/or like to tinker, otherwise leasing is cheaper and more flexible. Note that most other items on your list are not ownership: an insurance policy, donation, hired help etc. But that’s a side point.
Interesting point of view. I’d have said that leasing only makes sense if you care about having a newer model.
I disagree. I think that ownership provides a number of significant benefits not all of which can be straightforwardly converted to money. One benefit, for example, is control over your property and the associated freedom to do with it what you want. Another benefit is reduction of risk in uncertain and turbulent times.
Ownership of which things reduces risk, though? If you own a fishing boat, now you’re vulnerable to additional risk (damage to your boat, the constant threat of big expensive repairs - ‘a boat is a hole in the water you throw money into’), and you no longer have the resources you have spent on ownership of it up front rather than renting a bit at a time; those were resources that could have been a cushion against risk. If you spend $20k on a fishing boat & all its many expenses, you’re now down $20k and up on risk; if you keep your $20k, well, $20k buys a lot of protection.
A valid point. Ownership is not an unmitigated blessing :-D and there are certainly trade-offs in play.
I am not saying “you should always own if you can”, I’m just objecting to shminux’ “almost never makes sense”—I think it makes sense considerably more frequently than “almost never”.
Agreed on several of these, but not the car one. Cars are non-optional in most of the U.S. The value of having a paid-off one that you won’t lose if you find yourself unemployed for an extended time is considerable.
What I mean is that if you prefer (and can afford to) to drive a car that is no older than 4-5 years, it is cheaper and less hassle to lease it for that long than to resell it and buy a new model after that. Of course it is rarely a prudent course of action to not keep a car longer.
Owning a car can have a large advantage over leasing, if you are likely to keep the car a long time. An owned car can also become a second backup car, that it’s no big deal if it breaks down) if you get a newer one. Leasing two cars at once is a big waste of money.
Owning versus renting a home is not clear cut at all. Renting a house is a huge money pit unless you are frequently moving, and renting an apartment vs. owning a house is often not comparable in lifestyle. Owning a house gives you the property and flexibility, and can result in longer-term wealth building.
There is a lot of debate in America about whether or not we are still in a housing bubble, but it seems to be the general consensus that in at least some areas of the country, buying a house is probably not a good long term investment.
Do you, by any chance, mean the northern part of America that sometimes goes by the name of Canada?
In the USA, the pre-2008 housing bubble has certainly popped. Now, one can argue that there is another one inflating right now, but I haven’t seen many people make that claim.
The Motley Fools have a pretty good, and brief overview.
There are other articles around that name various sets of large American cities that are maybe/probably bubbling, and California is often cited as being at the forefront of the bubble.
However, you are right, the claims are that we are in a new bubble, not the same old bubble.