Hi, this is John from Downs Capital. And this message is for all you out there who do not yet own a home.
Maybe you haven’t even thought of owning a home. I want you to think of your home as an investment for building wealth. Every dollar you spend could be doing something else. Not just sitting in savings, but invested somewhere earning interest or equity. A home is definitely somewhere you could be putting your money to work for you.
Why do I think a home is a great idea? Well, a home is one of the least risky, soundest investments that exist. You have to live somewhere, and a lot of times paying rent just doesn’t make sound financial sense and can even be more expensive than a mortgage payment. Paying a mortgage is like socking that rent money away in a 401(k). You’re building equity in something. Something that tends to appreciate in value and becomes a great leverage tool to do other things.
Taking out a mortgage on a home is better than a lot of investments, because it’s like buying options. You buy, say, a $400,000 home with just $40,000. But you see appreciation on the full 400. Say that house appreciated 10 percent. That’s a $40,000 gain on your investment, which, minus some fees and expenses, is almost a one hundred percent return. Plus, there are significant tax savings that Uncle Sam is going to throw your way.
Not only do I want you to think of a home as an investment. You should know that you don’t have to be an expert to get started. You don’t even need a whole lot of money. You can, and in most cases, probably should start sooner than you think, like right now. You might be surprised.
If you want to learn more, you can contact us. Go look around at some of the other videos here in our library. Particularly, down payments. How much should I save up? And should you borrow from your 401(k)? Your road to financial independence starts now.
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