I read an article on CNBC quoting self-made millionaire David Bach explaining that not purchasing a home is "the single biggest mistake millennials are making" because buying real estate is "an escalator to wealth.” This isn't news to me but it should be an eye-opener for people - young or old.
Bach went on to explain:
"If millennials don't buy a home, their chances of actually having any wealth in this country are little to none. The average homeowner to this day is 38 times wealthier than a renter."
In his bestselling book, “The Automatic Millionaire,” Bach does the math:
"As a renter, you can easily spend half a million dollars or more on rent over the years ($1,500 a month for 30 years comes to $540,000), and in the end wind up just where you started — owning nothing. Or you can buy a house and spend the same amount paying down a mortgage, and in the end wind up owning your own home free and clear!"
Bach is a self-made millionaire who has written nine consecutive New York Times bestsellers. His book, “The Automatic Millionaire,” spent 31 weeks on the New York Times bestseller list. He is one of the only business authors in history to have four books simultaneously on the New York Times, Wall Street Journal, BusinessWeek and USA Today bestseller lists.
No doubt, there are plenty of good reasons to own the roof over your head, both emotional and financial but consider a few things.
1. Are your finances in order? Owning a home costs $$. Do you have money saved? How much debt do you have?
2. Will you be sticking around for a while? Rule of thumb, will you be planning to stay for three to five years?
There are other things to consider as well but there is no doubt that owning a home is a financial responsibility. BUT it is the single largest contributor to a families long-term wealth. Not sure if it's right for you....let's have a chat over coffee or a smoothie. I'll answer questions you have and provide food for thought to consider.
Whenever a well-respected millionaire gives investment advice, people usually clamor to hear it. This millionaire gave simple advice – if you don’t yet live in your own home, go buy one.
I'm wrapping it up now. If you need to know how to get started in the home buying process. Call me!