What's The Difference?

Dave says leasing a car is bad, but renting a house can be good? Isn’t that a contradiction?

QUESTION: Cory hears Dave talk about car leases as being a bad idea, but renting a house can be good. How is it good to rent a house but not a car? Dave tells Cory that he’s confused about something.

ANSWER: You’re confusing a permanent situation with a temporary one. Car payments are a way of life to most people. They need to break the mentality of “you’ll always have a car payment”, because having a car payment never worked to make anyone rich. For renting a house, I don’t recommend doing it for your life. It’s just that it’s better for some people in dire financial straits step back and rent, and get their money on solid ground. I wouldn’t tell you to rent for 10 years.