Investing in a House
May 26, 2009 · Print This Article
A lot of people are questioning the logic of using your house as an investment. There are a lot of reasons to own a house, but it is pretty unwise to have it as your primary savings method. House values since the 80s have barely outpaced inflation. Even when you choose years that they performed fairly well, the returns were less than what you’d get with many government backed bonds.
This isn’t to say you shouldn’t buy a house, but it does mean that you should at least consider renting. If you do buy, you may be much better off choosing a moderately sized house that puts you well below the maximum mortgage you can afford. The extra money can be better invested in other areas.
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Owning a house and not saving any cash – living under your means is DUMB.
Renting a house-condo-home and saving some money and getting some return on that money is better than owning a house and ramping up $20K on credit cards.
Someone wrote (I cant remember:)
Find some some work you LOVE to do,
work hard and long and be the BEST at it,
If you are not saving any money, then get a part time extra job and SAVE THAT MONEY.
Work for Money
Put some of that money to work in some interest bearing account.
Idea:
Save 10% of your take home pay in an envelope.
Put it under a bedroom mattress.
Save $500.
When you are finished, get a new envelope and do it again.
And, if you are in trouble with credit cards, go to Consumer Credit Counselling.
Good luck!
Brian
Real Estate Investing Trainer since 1986
BUY A HOUSE WITHOUT BANK LOANS OR CREDIT RATING!