I bought my home eight years ago and paid it off about two years ago. For the first six years, my mortgage included reasonable amounts for taxes and insurance in an escrow account. But after paying off the mortgage, my insurance costs skyrocketed—almost doubling! My property taxes have also gone up, which means I need to set aside a third of my former mortgage payment for these expenses. Recently, my insurance went up again, and after shopping around, I found no major differences with other companies. I’ve used all available discounts, including bundling. These developments have me rethinking homeownership. It reminds me of what Robert Kiyosaki said in Rich Dad Poor Dad: that a home is a liability, not an asset. As our family grows, we’re considering a bigger property, but more square footage means higher insurance costs. Even if I pay cash or pay off a new mortgage in 30 years, I will never truly own the property. The word ‘mortgage’ comes from the Old French word for ‘death pledge.’
Now that you don’t have a mortgage, you’re free to drop the insurance. Do you feel lucky?
Please tell me I was supposed to read that in Clint Eastwood’s voice. Lol.
You own it. Property taxes and insurance are just part of property ownership—like maintaining a car or feeding a pet. The alternative is paying rent, which builds no equity. Kiyosaki made his money selling books, not real estate. Your home’s value has likely appreciated while rent would have just disappeared.
Especially when we’re mostly talking about insurance without a mortgage. OP is free to not pay insurance and be responsible for any damage to their property.
To be fair, Kiyosaki made a mint selling and owning real estate too.
Kiyosaki never filed for bankruptcy, his LLC did.
Maxwell said:
Kiyosaki never filed for bankruptcy, his LLC did.
Uhhh yes. That’s why I typed (his LLC) in my comment.
Not to mention that rent is going to continually increase as well, because the landlord needs to recoup the increases in insurance/taxes.
No! Stop with this realtor bs. Rental prices are dictated by supply and demand in your local market, NOT YOUR EXPENSES!
Exactly! That’s why a $2 million home in San Francisco rents for $5-6k, not $20k.
Actually, OP brings up a good point. When the government can remove you from ‘your’ home for non-payment of taxes, we are all effectively renters, and the government is the landlord. His point about houses being a liability if you live in it is true as well.