The Daily Soak - September 29

How Much Home $1 Million Will Buy Around The World

There's a new McDonald's commercial with an annoying guy running around town asking what $1 will buy. Forbes takes the same premise a giant leap further by adding $999,999 to the bargaining equation and sending readers around the world in search of $1 million listings. The usual suspects show up on the list of cities where $1 million doesn't buy much more than four walls, a roof, and a place to sleep: London, New York, Tokyo, Paris and Singapore. But interspersed among these pricey metros are Latin American destinations like Sao Paulo, Brazil; Heredia, Costa Rica and Buenos Aires, Argentina where you get a bigger bang for your peso. One of the most spectacular is the four-bedroom 18th-century house (pictured) on a colonial side street in Guanajuato, Mexico complete with an interior stone patio, stone archways, pomegranate trees, and a private chapel with a hand-painted ceiling. (SlideShow)


Florida Losing Its Luster for Many Approaching Retirement

Just ask a former Keys resident like Ron McMullan. He recently sold his home on St. Armands Key and moved to the Shenandoah Valley of Virginia. "The whole idea of retiring to Florida is a thing of the past," says McMullan, "Florida has kind of lost its glimmer for me." McMullan is not alone according to several real estate analysts cited in this article. They blame our high cost of home ownership for our waning appeal. States like Texas, Virginia, Tennessee and Mississippi are gaining ground on Florida and luring potential retirees with more benefits and a much lower cost of living. Just compare what $500,000 buys you in a city like Fort Lauderdale compared to cities like Austin, Nashville and Richmond. Factor in our exorbitant property taxes and insurance costs, and you can understand why Florida is losing ground.


The Case for Renting...For The Rest of Your Life

Jack Hough of SmartMoney.com has an un-American confession to make: "I rent an apartment, despite having enough money to buy a house. I plan to keep renting for as long as I can. I'm not just holding out for better prices. Renting will make me richer." With the bitter after-taste of "The Joys of Home Ownership" Kool-Aid still fresh in many Americans' mouths, Hough makes a compelling case for owning stocks (which typically return 7% per year over long-term periods) and renting houses (whose average return for owners over long time periods is 0%.) Anticipating a backlash, Hough prepared responses to some of the most common arguments current homeowners cling to like "Renting is for poor people." Hough responds, "Middle-income people buy houses. High-income people, presumably with a dose of financial savvy, often rent nice apartments instead of buying."