I’M GOING TO SHARE WITH YOU A FEW REASONS WHY BUYING A HOME
is the best investment one can make, especially at a young age. This gives your money time to go to work for you vs. paying rent to build someone else’s equity.
If you’re paying rent in 2016, here are a few reasons to buy a home in 2017.
If someone offers you a choice between taking 1 million dollars this very instant or a single penny that doubles in value every day for 31 days, which would you choose? The million dollars right? What if you take the doubling penny….
On day 5 you have 16 cents, and that one million is looking a lot like the better choice. By day ten you have $5.12 and you’re kicking yourself for not taking the 1 million dollars. After 20 days you’re looking at $5,243, a lot less than the one million you’re wishing you took. The good news is that over the next 11 days, the mathematical explosion will occur. By day 31 you will have well over 10 million dollars.
After 10 years of paying $1,200/month in rent, you have given away $144,000! That is a lot of money and time that could have been used towards building your own equity!
Here are a few Reasons to Buy a Home in 2017!
Rental prices are increasing at fast paces through out the United States. In our area we are witnessing monthly rent appreciating at an incredibly rapid pace. We also have many affordable homes, but home values are also on the rise. No matter what area you are in, if you are paying rent then you are helping to build someone else’s equity. For anyone paying rent, there is no better time to buy a house than right now.
If you’re paying rent, you’re not helping yourself grow wealthy, you’re helping someone else grow wealthy. Over the course of 10 years at $1,000/month you’ve either paid down your mortgage or someone else’s by $120,000. What would you have done with that $120,000?
Everyone needs a place to live and no one understands this concept better than landlords. Every month they are collecting rent checks that are paying off their mortgage. Slowly but surely that investment the landlord made in the home is building their wealth, a lot like the magic penny.
Rather than help someone else grow wealthy, buy a home (or several over the course of a few years) and help yourself grow wealthy!
If you’re not paying attention to interest rates as we close out 2016 then you need to start right now. Over the last few weeks, interest rates have gone up.
Interest rates are one of the best, if not the best reason to buy a home in 2017! Rates have been at historic lows for awhile now. Trying to predict which way interest rates will go is impossible, the same way stocks are. Interest rates fluctuate the same way home prices do.
Still, even though rates have gone up they are at historic lows if you look back at a much longer period of history. Anything under 4 is exceptional. A lot of people are going to regret not buying a home during this time-period. Many won’t realize the opportunity they have right now until it’s too late!
Invest in yourself and watch your equity grow….
You have to start somewhere, and the sooner you begin the more time you have for gaining equity! ! You’ve seen how quickly equity can grow, and in order for it to reach its true potential you need to give it time.
Building your own equity may seem like something small in your twenties and thirties. Retirement is not in sight and you don’t have that many financial responsibilities, yet. Some millennials are saving their paychecks and living at home with family still, working hard to save money for their down payment of their first home.
You need to be able to see the future before it happens in order to create the life you want for you and your family. It’s your responsibility, think long term.
We’ve already talked about the role time plays in creating wealth. The earlier you begin with owning your own home the faster your equity will grow. Put your money to work for you, be patient, and watch what happens.
Many folks are so busy living life, they don’t save for retirement and their saving grace is their home.
Imagine if you had bought a home every year and rented them out. Eventually, all that equity is going to afford you a retirement many people only dream of.
CALL A MEMBER OF THE RICK AND TRACY ELLIS TEAM AT 636-299-3702 or visit tracyellis.com
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