Being a Renter . . . Becoming a Home Owner
Ever notice: The TORTOISE HAS A HOUSE!
There's so many articles written about Renting vs. Buying . . . and I'm sure I've written a few as well. So what's another one added to the mix?
If you are a renter and have been listening to those Freaks that know everything, you're probably still paying rent. Great!
Owning property, i.e., a HOME of your own, if done correctly (the slow AND steady approach) is one of the few things you can do in your life that can actually secure a financial future.
Most of us do not think about long-term and that's a shame.
We are in the INSTANT GRATIFICATION mindset, we aren't taught and/or trained to think about long-term slow but steady plans. The future gets here, whether you are listening to the Freaks, or taking some sound advice. Time waits for no one!
What Happens in 20 Years?
The renter:
A 31-year old decides to rent. In 20 years what happens?
They will be 51-years old.
They plan on retiring in 20 years
For a decent rental unit, one can expect to pay $1,200/month in my area.
$1,200 x 12 x 20 = $288,000 paid out.
They own nothing and will need to pay another $288,000 for another 20 years, or more.
The Owner:
A 31-year old decides to buy. In 20 years what happens?
They will be 51-years old.
They will retire in 20 years . . . maybe sooner. They don't have a MORTGAGE PAYMENT anymore. They don't have to pay rent! They paid their principal down every chance they had.
In 20 year's time, the $219,000 they paid for their home has appreciated a modest 3% over the years, and the market is now bearing $359,000. They realize about $140,000 in appreciation, their home is PAID OFF, and they have no housing payments at all. Except for property taxes (which they can use as a write off), and general home maintenance, they can take that to the BANK!
Sure they paid the banksters interest . . . but they could, and did, use the mortgage interest deduction to their benefit.
They OWN their own home. They have EQUITY, APPRECIATION and no monthly mortgage / rent payment to shell out . . . ever, ever, ever again!
The Long Term Plan
There are very few people winning the Lottery. In order to attain some wealth/security one must prepare for it. Work, save, and think . . . about the FUTURE! If you do not, the future WILL arrive, and 20 years goes by fast!
Each market varies, and I'm using standards for my local Portland Metro real estate market.
Slow . . . but STEADY wins the race, boys and girls. Don't ever forget that!
Ever notice: The TORTOISE HAS A HOUSE!
You have to pay for a place to live . . .
PAY INTO THE BANK OF YOU!!
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