Home Ownership: Understanding the Benefits
Still not convinced that you should, at least, consider buying a home? Well, let’s talk about some of the benefits. I’m not here to repeat what I stated before. I’m going to talk about some different benefits. With ownership, the government and community looks at this differently than renting. Main reason, a person renting can be there for 2 years and leave. When you buy property, you make an agreement or commitment for 15-30 years. So when a renter has an issue in the community or a homeowner has an issue in the community, who do you think will have a bigger voice? We all like to think that everyone has an equal voice or say, but the truth is the homeowner pays taxes on the land for a long time, while renters come and go. Homeowners know other homeowners and the more property owned, the bigger the voice becomes.
You want a nice car, right? You can actually take a home equity loan against the equity of your house to purchase the car, then pay that off over time. That’s called leveraging my friends. Just imagine this, once you pay off your mortgage, that house is yours. You can will it off so it stays in your family; you can sell it; you can rent it out; you can let it sit there and rot if you wanted to. Having a house is a big responsibility, but it is also a great asset. We all need a place to live, right? With families, how good would it be to have a place for your kids, where they don’t have to worry about where they are going to live or how much they will pay to rent a place, because you have a house that you own free and clear that you can give them or even sell to them (if they need to learn to be responsible). If you decided to collect residual income by being a landlord, you would now have people working everyday to pay you first. Then, every month, you will be collecting. Now what if you bought 10 houses that give $500 profit every month per home? That’s $5,000/monthly without you doing anything, but switching your mentality and taking action. Not to mention the other benefits such as equity (difference between what the house is worth and what is owed on the mortgage)
I’m going to tread lightly on this topic: renter’s mentality. As I worked in many financial fields, I notice MOST, though not all renters, share a mentality of short term thinking and they get comfortable in their situation. Nobody in their right mind should say, “I’m going to rent an apartment or maybe get a nice rental home for the rest of my life”. We somewhere down the line get comfortable in our situations and stay there. No offense to anyone at all. Educating yourself on how to attain ownership instead of comforting yourself on why you should stay where you are should be a goal and a mission. Change and growth is a part of life. Let’s start challenging one another to do more and stop comforting each other. Misery loves company and success is lonely… Which side would you rather be on?
If I had a chance to make a change in my life–personally I’m going to change my life–I would have to sacrifice being popular. Popularity is for high school and I’m quite grown. If I have to live a life of moderation and conservation for 5 years to live in abundance for the rest of my life, I will sacrifice having designer clothes; I will walk and take the train; I won’t buy any jewelry or party every weekend. I will even get public assistance to pursue my goal. What’s sad is that most Americans are too spoiled and egotistical to accept what it is. I’ve seen immigrants come to America, get public assistance, go through garbage to find furniture and take the work nobody wants to do. BUT they send their kids to school and open up businesses. In ten years they have furniture companies, their kids are doctors, lawyers and accountants, and they are now homeowners, with nice cars as well. Now they are working smart, not hard.
Now that you have the facts, which sounds like a better plan: renting or owning? Aside from fear, what’s holding you back from owning a home or condominium? If you do plan on making a purchase, let’s come up with a game plan and strategy for your individual situation to help you become a owner together.