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Monday, April 23, 2018

WORTH - Homeowner vs Renter

NOT Owning Your Home Can Cost Money!

This sounds crazy – sort of like fake news – but studies show that a homeowners worth is 44 times greater than that of a renter.

I’ll wait – go back and read that again!

Is there magic involved? No, not really. There are benefits for homeowners that are simply not available to renters. Typically, you invest some of your money and borrow the rest – it is called leveraging. You earn appreciation not just on your investment – but rather on the total package. Whatever your home is worth is the basis of appreciation. Call it a forced savings program!

As a homeowner, you earn the appreciation, you make a monthly payment (paying down your mortgage balance) and, if you make smart upgrades, you earn on that investment and enjoy their use as well. Another possibility is do some of the work on upgrades or improvements yourself. The combination is a great way to enjoy your home, your investment and improve your wealth. Be sure to follow the link above for more information.


Cost of Renting vs. Buying

I am just going to leave you to your own to check out this chart – and do click on that link above to open it up. Rents are moving up (when do they ever move down?). The current spread is ridiculous. Are you ready to buy?


How Much Do You Need to Make to Buy a Home?

Where you live matters. If you click the link and view the map, the “average” in Texas is $50k. Depending on your city or town, it could be more or less. Compare that to $89k in California!

Texas has much to offer – including jobs. San Antonio is a great city and still holds on to much of its small town character. Friendly folks are everywhere. If you are looking to relocate, come on down and visit. Judge for yourself. If you are local, you already know that. If you are a local renter, time to change that to being a local owner!


Home Buying Myths

This section is addressed mainly to renters who are considering becoming owners. You are also known as potential “first time buyers”. It is time to jump in, don't let obstacles get in your way and become an owner!

There are all kinds of bits and pieces of inaccurate information floating around about what you need for a down payment and what your credit scores need to be. It is time to get the facts and good information. Click on the link above to open up today’s article.

My number one bit of advice is – GO FOR IT. If you want to increase your wealth and ditch the rent payments, you simply owe it to yourself – and if you have a family – to take a shot at getting approved for a mortgage.

What is the WORST that can happen? If someone says “no” you can use that to find out what you need to do to get a “yes”. Once you are approved, we can go house hunting with confidence! Sound like a plan? Call me.


Home Prices Will Increase - 99% of Experts Agree!

Oh lordy, I just love when you can get experts to agree en masse. Nothing is a “sure bet” but the number of experts in agreement lends credence to a predictable outcome. If you click through to today’s report, you can see some varied opinions on how much prices will appreciate, but the upward direction is highly favored.

However, you can toss all that out the window! Just on housing cost alone – not factoring in appreciation - once you become an owner, you can freeze your payment for 30 years. It is most unlikely that you can do that to your rent payment! (If you can, please call me and share THAT secret). Oh, and did I mention after 30 years your payment can go down – yes, down – to zero. Of course, property tax and insurance is not going away any time soon, but principal and interest can be gone! Walk with us on the road to better wealth!