Rent or buy the primary residence

[David Y.]

Hi Everyone,

Recently I heard from a real estate investment guru that buying the primary residence to live in is the worse real estate investment ever.  I was surprised but his argument seemed to be sound. 

Granted that I can enjoy the tax break from the mortgage interest and it is cheaper to pay mortgage than rent,  I am wondering in the same time if I should sell my house and rent.  

I live in a class A area where the rent ration is about 0.7% only.  I can sell my house and get about $250k equity and use it to reinvest in a few other houses that have more than 1.5% rent ratio, and in the meantime spend $3000/month to rent a house that is better than mine.  Does this make sense to you?  I am eager to hear what you have to say... cause it is very hard to convince my wife to sell our house..  :-(

David