Looking for some good advice on buying a home? Here's some from David Bach, a self-made millionaire who has written nine consecutive New York Times best-selling books. His book “The Automatic Millionaire,” spent 31 weeks on the New York Times bestseller list. He is also one of the only business authors in history to have four books simultaneously on the New York Times, Wall Street Journal, BusinessWeek and USA Today bestseller lists.
In a CNBC article, Bach talked about a mistake that people, especially millennials, are making: “The biggest mistake millennials are making is not buying their first home.” Bach also brought out that, “If you want to build real financial security, real wealth for your lifetime, then you need to buy a home.”
Here are some more important points he revealed in the article:
“Homeowners are worth 40 times more than renters. Now, that first home doesn’t need to be a dream home, it can be a very small home. You might literally have to buy a small studio apartment, but that’s how you get started.”
“Don’t do a 30-year mortgage. You want to take that 30-year mortgage and instead pay it off early, do a 15-year mortgage. What happens if you do a 15-year mortgage? Well, one, you pay the mortgage off 15-years sooner, that means you’ll be able to retire in your fifties. Number two, you’ll save a fortune (on potentially hundreds of thousands of dollars in interest payments).”
What will it cost to pay your mortgage in fifteen years?
“For fifteen years, you got to brownbag your lunch. Think about that! Brownbag your lunch literally for fifteen years. You can retire ten years sooner than your friends. You’ll have real wealth, because you bought a home – you’re not a renter. And you’ll be financially secure for life.”
You may have heard this kind of advice before. But when a well-respected millionaire gives you advice, it’s usually a good idea to follow it. It's true that many successful individuals have found that buying a home is the most advisable course toward financial security.
As an additional note on David Bach’s experience, he has been a contributor to NBC’s Today Show, appearing more than 100 times, as well as a regular on ABC, CBS, Fox, CNBC, CNN, Yahoo, The View, and PBS. He has also been profiled in many major publications, including the New York Times, BusinessWeek, USA Today, People, Reader’s Digest, Time, Financial Times, Washington Post, the Wall Street Journal, Working Woman, Glamour, Family Circle, Redbook, Huffington Post, Business Insider, Investors’ Business Daily, and Forbes. Not a bad resume!
If you’re ready to buy a home in Beaufort, Bluffton, Lady's Island, and Fripp Island, give us a call at 505-263-2173 to talk to an experienced agent. And if you don’t want to talk to someone just yet, you can browse our website for the latest real estate on the market. And make sure to use our powerful home search tool to find the home of your dreams today!