Crazy Finance: Episode 1 – Why Buying a House Might Be the Worst Financial Decision

The James Altucher Show

James Altucher

Society & Culture, Talk Radio, Writer, Philosophy, Comedy, Chess, How To, Entrepreneurship, Jay, James, The James Altucher Show, Altucher, Author, Jay Yow, Education, Jay The Engineer, Business, James Altucher

4.6 • 2.7K Ratings

🗓️ 18 July 2025

⏱️ 28 minutes

🔗️ Recording | iTunes | RSS

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Summary

A Note from James:

Owning a home has been sold to us as the American dream. But what if it's actually a financial nightmare? In this episode, I talk with my friend Doug Hill about why I think buying a house is a bad idea—not just a little bad, but one of the worst investments you can make. Doug and I disagree on some points, and that's the fun part. This isn't about being contrarian for the sake of it. It's about questioning assumptions that most people never even stop to think about.

Episode Description:

In this premiere episode of the Crazy Finance series, James Altucher and Doug Hill take on one of the most sacred cows in personal finance: home ownership. James argues that buying a house isn’t the milestone of success it’s made out to be—it’s an expensive, illiquid, and overrated investment. Doug offers a counterpoint rooted in emotional and lifestyle value. Together, they break down the numbers, psychology, and cultural narratives that shape the decision to rent or buy.

If you’ve ever wondered whether you should buy a house—or regret that you did—this conversation challenges the conventional wisdom with real numbers and uncommon insight.

What You’ll Learn:

Why owning a home may be one of the least financially sound decisions you can make
How homeownership locks you into inflexible geography and limits job mobility
The hidden costs of maintenance, property taxes, and lost opportunity
Why emotional security often drives people to buy homes, not financial logic
How rental life can be financially and psychologically freeing

Timestamped Chapters:

[00:00] Homeownership Is a Scam?
[01:00] Introducing the Crazy Finance Series
[02:00] James’s 11-Item Airbnb Life
[03:00] Why Freedom Costs Less Than You Think
[04:00] The Myth of "Throwing Away" Rent
[06:00] What Makes a House a Bad Investment
[07:00] Real Estate vs. Diversified Assets
[08:00] The Illusion of Home Equity
[09:00] Historical Returns on Housing
[10:00] "Found Money" and Forced Savings
[11:00] When You Never Truly Own Your Home
[13:00] Renting vs. Buying: Lifestyle Tradeoffs
[14:00] James vs. Doug: Dominican Property Math
[16:00] Renting as Freedom, Not Failure
[17:00] The 40-Year Trap of the Down Payment
[18:00] Recession Horror Stories
[19:00] Emotions vs. Economics
[20:00] Getting Stuck (Just Like Factory Towns)
[21:00] Why James Still Owns a Home (Kind Of)
[22:00] Gender, Culture, and Nesting Instincts
[23:00] Listener Homework: Is It Really a Good Investment?

Additional Resources:

James Altucher on Twitter: @jaltucher
U.S. Housing Returns Historical Data: Case-Shiller Home Price Index via FRED
Mortgage Interest Rates: Bankrate.com
U.S. Property Tax Statistics: Tax Foundation – Property Taxes by State
Choose Yourself by James Altucher – Amazon

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Transcript

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0:56.8	Hiring, Indeed is all you need.
1:00.2	Today on the James Altager show.
1:03.4	People say, well, when you're renting, you're just throwing money down the toilet.
1:06.9	I think owning a home is a bad idea.
1:09.9	And in particular, it's a bad investment.
1:13.2	I think people have been scammed into thinking that owning a home is the quote-unquote American dream,
1:19.4	the white picket fence, the yard, the safe streets for your kids to play.
1:23.8	You own a house, you never really own it, right?
1:26.4	You're paying property taxes, whether or not you have a mortgage, right? Right. So that money is gone. Like, that money is gone now. Previously, you had $200,000 in your bank account, and now it's not there. What are the characteristics of the ugliest investment? It's illiquid, which means you can't cash out whenever you want.
1:45.2	In fact, usually the time when you want or need to sell your house is a time when you can't sell out.
	...

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