Is it Better to Rent or Buy a House
I always get asked THIS question: “Should I actually use a bank and buy my house or should I just rent?”. Today, I’m going to answer.
It’s an excellent question, actually.
Based on the way the banks do the system, they’re going to make you pay for that house three times over 30 years. The interest deeply front-loaded. And the idea of paying thrice for that house is outrageous, but it’s happening.
But! There is a way to win against banks.
To win against banks, I get REALLY good deals when I buy a house. The deeper the discount I get that house with, if I buy it with a 20% discount or a 30% discount, or a 15% discount, then I’m leveraging a lot of EQUITY.
Do people stay in the same house for 30 years? No. That means that if for the first five years of a mortgage are just going to be paying interest anyway, when you sell it, you might as well allow yourself to capture any of that appreciation, as well as that deep discount. And if you do that, you’re going to keep yourself protected.
Should you hold on to the house long-term, you’d be glad that you bought it instead of rented it. Renting is just throwing all of your money away. So, do I buy or do I rent? The truth is, it depends. It’s all about a financial game plan. But for me, it’s going to be buying.
Buying with the right strategy will always get you further ahead than renting.
If you’d like help creating a game plan specific to you?
We offer a free game plan consultation. I look forward to talking to you, to help you figure out your own plan of how you can invest in real estate with no money, like I did.