"Don't Buy, Ask Why." Buying MYTHS explored.

Make sure if you are going to buy, that you buy for the right reasons.

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Don’t be tricked or manipulated with the common myths that you might hear from Realtors on buying.
Here are some MYTHS covered in the video below:

  • “You have to buy for the tax savings”, or the
  • “What, you want to make your Landlord rich”
  • “Buying in DC is a no-brainer, things can never go down”
  • “I’ll just rent it if I can’t sell it”

Also read this article that I helped gather information for from the New York Times: Is It Better to Buy or Rent?

– Written by Frank More at YouTube.FranklyRealty.com

  • 21
  • December
  • 2006

16 Responses to “"Don't Buy, Ask Why." Buying MYTHS explored.”

  1. Anonymous says:

    Are you a Realtor telling buyers NOT to buy? I’ve can’t say I’ve seen that before.

    You must be poor. ;-)

  2. Anonymous says:

    is this some trick to make me feel good about you as you rob me blind? it’s working!!

  3. Anonymous says:

    Great video. Indeed refreshing to here your advice.

    This graph has recieved alot of play in the uber, super-bearish realestate “don’t buy now” camps saying that -based on the graph – we are in for a massive correction. Do you have any thoughts on this graph? How would someone in the market looking to buy today want to offer any more than a house sold for in say 1999?

  4. Geoff in Arlington says:

    Forgot to post the link to the graph above:


  5. Anonymous says:

    This was great.
    I’ve been having this discussion with a friend of mine that recommended your website and I realized I need to examine my motivation to buy as opposed to rent.

    Thanks Frank!

  6. Charlotte says:

    Really well done, Frank. We are planning to move back to the DC area eventually, and it’s been scary to think that we’ll never be able to afford to do so. You’ve given me a lot to think about, thanks.


  7. Kurt Jackson, CMPS says:


    I found your blog through the link in a Realty Times article. I have enjoyed what I have read and listened to so far, but I do have a bone of contention on your tax evaluation of owning real estate.

    In your video you said you lose your tax advantages if you have a rental for more than 3 years after you had owner occupied it in the previous two years. You do lose the capital gains tax exclusion in that case. (The 2 in 5 rule excluding $250,000 to $500,000 in gains)

    There are other tax advantages of owning rental real estate including depreciation. Where if you have a loss on that rental after you figure your rental income and subtact, insurance, maintenance, taxes, interest, depreciation, etc. and you have an adjusted gross income less than $100,000 (it phases out from $100k to $150k) you can use those losses to offset earned income (income from your job). If you make more than $150k the largely paper losses can be taken as losses against passive gains.

    AND, with a 1031 exchange if you sell that property after the 2 in 5 rule is no longer in play you can still defer taxes forever with the proper strategy thus avoiding paying taxes. You can access some of if not all of that gain tax free through refinances. That does create an interest cost as well as closing costs, but you can take out that money tax free. (Always remember, I am not a tax advisor always consult with a tax advisor).

    So your information is mostly correct, but you leave off what could be some very attractive tax favored strategies to continue to own rental real estate.

    I know that it gets somewhat complex, but if you want to be a full disclosure type real estate agent shouldn’t you give full disclosure?

  8. FRANK LL0SA Broker says:

    Hey Kurt,
    There are always further details when it comes to taxes and I always disclose that I am not a tax advisor and you should consult one before making such huge decisions.

    However, I was talking about the tax benefits of home ownership with the home you live in. You area talking about different tax benefits for ownership of a rental. Those are two separate things.

    If you have a blog that details how this works, I’d love to link to it.



  9. Kurt Jackson, CMPS says:


    I went the rental route because in your video you talked about losing your tax benefits if you ended up renting your (former) primary residence for 3 more years.

    I do have a new blog, but I haven’t addressed this topic yet. I will eventually. You can check it out at http://www.kcmortgageplanning.com/blog

  10. Anonymous says:


    I am a realtor who has tried to explain some of these same points. The fact that your hot helps! would definitly shave next time.


  11. Anonymous says:

    Excellent information. I’m a first time buyer and can already tell right off the bat that I’m going to be paying more per month in owning a house than I currently do in renting.

    You’re the first real estate person I’ve ever heard admit that.

    Laurel, MD

    I appeciate your integrity.

  12. […] (Watch my 2007 Don’t Buy Video). Yeah, just lie to your friends that say “so do you own this place?” It is none of their […]

  13. Maria Evans says:

    Frank, I believe you can be honest and still make money. Congratulations!

  14. Ryan says:

    I hope you don’t get a ticket for distracted driving. You are putting the public at risk.

  15. Anonymous says:

    The NYT article was written in 2005, when the real estate was at its highest. Is this still the case since 2008 and now 2012?

  16. […] rates can’t get lower!” Over here we first say DON’T BUY, ASK WHY (since 2006 when I had hair). Which means, let’s first figure out if buying is right for you, and THEN […]

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