I have a good friend with a Masters in Real Estate saying that real estate investment property and being a homeowner and thinking of yourself as the “rental tenant” for the house you live in can be a great ROI. He is saying that if when you buy a house you rent it to yourself at the price you would rent it to someone else then you are getting a great ROI on your investment. Do you agree with this? He is saying - do you trust yourself more to pay the rent or someone else? Since you will pay the rent consistently you are giving yourself a great ROI.
He is also claiming that being a home owner can be a nice way to get more diversification away from Index Investing and as a hedge against inflation. Full transparency, 95% of my net worth is in index funds.
Honestly I am very content with renting, have rented for 10 years in NYC and it has been great. The only reason I would consider buying is for flexibility in customizing my primary residence the way I would like. Examples include adding his and her sinks, or a larger bath tub, etc. Renting thus far has not provided a bath to do this, though maybe it could?
Thank you very much in advance!