Myth: OWNING A HOME IS LIKE MINTING MONEY.
One of the myths about home ownership is that buying a home is a guaranteed positive investment. It's true home value certainly do tend to increase. But that's not always the case.
It all depends of time and location. You heard it before, there is some times that home value increase very, very fast, but sometime happened and also decrease. And it's also go hand to hand with the location, location, location, location for sure you visited before is some places the area the house price goes very fast really quick. In other area is taking a little longer to get the value.
Some studies show that it is better sometimes to rent and hold your money for time being. If you see the prices are going drastically high, you know that there will be a time the price may be going to settle. So you rent something for time being put your money in another investment. And then buy when the time is right for you. So it's all depend on the time basically, which year what time was the market looking and of course the location.
Basically, buying a home is like having a forced savings account. A portion of your monthly mortgage will go towards building your wealth. While when you're renting, there is no benefit, no extra benefit whatsoever when
You’re renting a property. Remember, buying a home is also requires some discipline, you have to have a home in your budget. I mean he has to be add the value of your home or even below your but you have to consider within your budget that will be a win win is not never recommended to buy a home just for the pleasure of building wealth. You have to have it on your budget.
Now let's talk about a rental investment. When you're buying a rental investment, you make sure that your cost monthly costs the taxes insurance and if there is a mortgage payment, it has to be lower than the rental income. Don't just get a rental property thinking the price is going to go up and you're going to make a lot of money from the equity. Sometimes it doesn't happen. So that is the very, very important.
I hope you found this video informative and helping you on your next purchase.