The awesome fantastic magic of owning a property
Real estate: is it a goldmine? You can certainly search the internet for topics of wealth building and people that can advise you for a fee. What I have learned is that real estate is what you can make it. What makes it attractive for investors is that you can have a great yield (5% to 100%) on the money you use to purchase. You can write off depreciation of a property and maintenance. You can gift assets and be taxed less by the government. Property prices increase with inflation. You own a physical asset and can borrow against it. Maybe they enjoy fixing up houses. What are the negative aspects of this strategy? This is where many of these websites or advertisers fail to explain. What I found is that real estate is a lot of time and work. This asset is not quickly available if you need your…
People are losing money on rent! Find the wealth!
If you have seen my other post about real estate you know the benefits of investing in it as well as the negatives. In my opinion the way we live is backwards. We should be buying property first when we are young not renting and we should be renting when we are older. Example: Young adult: You are 22 years old and just finished college. Starting your first professional career in banking. You earn $50000 per year. You do all the right things maximizing retirement, emergency fund, doordash on the side, making some extra money, start SEP ira, have a Roth IRA, and have an HSA account. You have $0 for a home down payment and you don’t have a lengthy job history for the bank to give you a home loan. You will be stuck living in a rental. You end up paying $1000 per month. You are spending…