Why You Need to Buy a Home Instead of Rent

 

Why isn’t renting a better option for those in their 20’s?

Owning real estate is the most powerful way to build wealth, ever in this country.

If you think about it, you buy this $150,000 house, and for the same payment you’re making rent right now, you’re reducing that balance every month. Remember, the magical 30-year number, you’re going to own that house free and clear.

So, ┬áif you think of that from two aspects; one a house that costs $150,000 today will probably cost three, four, $500,000, 30 years from now. Not only do you owe zero on it, it’s now worth $500,000. Can you think of a better way to accumulate a half million dollars in wealth over the next 30 years? Making the same payment you make today, but instead of making it to a landlord, make it to a mortgage payment.

I know a lot of the fear is, you would feel trapped. You would feel tied to that house.

This is where you can become the landlord. See, I think owning a home is actually more freeing because you can move out whenever you want and rent to somebody else. Think about all of your friends who are renters. If all of a sudden you got moved to D.C., or somewhere else, I’m sure you could find some friends that would rent your house out, and now they’re making your mortgage payment for you, so it’s actually more freedom.