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c)Let’s see…$600 versus $11,500. Hmmm. I like that math. That equates to a nice healthy tax return for most of us, come April of next year.
Take those thousands of dollars in tax return, and go on a nice Cruise around Jamaica!
5.WEALTH:
It’s arguably much, much harder for a renter to build wealth. There is no built-in mechanism for appreciation, whereas
homeowner has postured themselves wisely for future.
a)Let’s say we have a renter that wants to get wealthy. Great! They must go find a business to run, or a stock to invest in, or come up with a great invention, or be next rock star, or follow a family friends “tip”, and go do Cattle Futures from August to September (just an example, folks…I don’t know anything about cattle…). In any event, most people would be concerned that our renter is following proverbial “pipe dream” towards wealth.
b)But let’s say we have a homeowner who wants to build wealth. Great! What do they need to do? Simple….Nothing…Pay mortgage…Live in house…Go work your job. That’s it. Real Estate appreciates in value, on average, over long haul, like no other financial vehicle. It is a virtual certainty, and it is automatic. The homeowner controls total value of home. That’s magic of leverage.
c) Let me drive point home: Someone might buy a house at $150,000, let’s say, and over course of 7 to 10 years, it is completely reasonable to suggest that this very same house could be worth around $600,000.
Renters do not have a built in advantage for building wealth, whereas Real Estate appreciates in value as a virtual certainty. They don’t call home-ownership “American Dream” for nothing!
SUMMARY:
The subject of deciding on whether to Buy or Rent, is not simple. In end, it boils down to a question of complexity. Being a Renter is simple. Being a Homeowner is more complex, and yet, that does not mean that it is not within your grasp. It IS!!! There are so many people that are just waiting in wings, yearning to help you get there. Real Estate Agents, Mortgage Brokers, Friends, Family, etc.
With all of these resources around you, just about anyone can own a home, and in this great country, American Dream of Home Ownership is completely within all of our grasps!
But do me a favor. Give yourself time to examine these important questions first. Look within. As we all get older in life, we yearn for more. Buying versus Renting is a common theme in this journey. As we wave goodbye to younger years, we say so long to simplicity of life, and we say hello to promise of prosperity, wealth, and a better tomorrow. We also say hello to higher, more complex things. Often times, it’s simply willingness to accept complexity that will get you to understanding you need.
Best of luck on your journey, from Renting to Owning your next Home!
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