SHOULD YOU RENT OR BUY?
This is the first in a series of articles to help further address and explain some questions I get online. In this video, someone gave more of a suggestion rather than a question but I think it’s still worth addressing. I’ve done many videos addressing renting vs buying a house and the associated risks/rewards that come from either option. In my opinion, you’re almost always better off buying a house instead of renting if you have the opportunity. In THIS video, I breakdown how much you could potentially lose from a financial perspective but in this particular article, I want to address a very specific concept that I think is often misunderstood.
I want to address the idea of Retirement. Retirement gets thrown around quite a bit these days but I don’t think most people truly understand what that means. Effectively speaking, retirement means you don’t have to work but I think the common notion is that a person will work at a company for several decades, retire, and have their expenses paid from their pension or retirement account. This is true to an extent. However, people tend to dismiss a few variables. They often dismiss how much money is in their account, how long it will last relative to how long they’ll be alive, and the biggest variable that often gets overlooked--what are their expenses when compared to monthly earnings. The final variable is extremely important to think about. People take the idea of retirement for granted. However, not everyone is fully capable of retiring comfortably. Imagine you have monthly expenses of $5000 but your retirement earnings only provide you with $2000 a month? Well, you have to either reduce your expenses significantly to meet that $2000/month cap that you’re allotted OR you’ll have to work more in order to maintain your current standard of living. Either way, you’ll have to sacrifice and it will be a major sacrifice regardless. Effectively, you retire but struggle to pay bills (because realistically, most rents will be far higher than $2000 and the value of a dollar will have decreased due to inflation). Or, you simply never retire...which I think defeats the purpose of hoping for it. Personally, I believe owning Real Estate early on is your best bet. Real Estate typically appreciates over time with inflation so the value of your money won’t be lost. Also, there are many advantages and opportunities that arise with owning real estate that will allow you to make more money much faster and far easier. Simply put: Your house can make you money or, at the very least, keep you from losing money. If you’re interested in buying, renting, or selling Real Estate, please don’t hesitate to reach out to me and ask a question on my Instagram account where I’ll make a video discussing it. Also, be sure to check out my YouTube playlist for more helpful content. Finally, if you’re interested in buying a house but don’t know where to begin, grab a copy of my book Don’t Buy a Home Until You Read This for FREE below:
. This book typically retails for $14.95.
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