September 20
The Power of Homeownership
There is an abundance of reasons to become a homeowner, but one that is not appreciated enough is the financial hack that buying a home is.
Everyone is eager to show you a multitude of methods on how you can become a homeowner, but they spend less time emphasizing the true strength that lies in this purchase.
Cutting out such a crucial part of the reason to buy a home leads to people being discouraged from getting serious about a plan and taking action.
Here, we are dedicated to helping people see the power of homeownership so they can harness it to achieve their financial dreams.
The Problem With Renting
If you have been a renter in the US for any significant amount of time, you’ve surely noticed something about your rent situation now vs. when you first moved out.
Rent always goes up.
In the US, continuing to rent could leave you and your family at risk of severe financial burden. This is due to the fastest growing investment in human history, real estate in the United States.
Rent will continue to be matched to the value of US real estate rather than the wage you earn, leaving you always playing catch up to the greatest investment of all time. This is an unsustainable way to secure your housing, as the cost of living could rise at any moment without an increase in income.
If you think about it, rent perpetually going up makes sense.
The person who owns the space you rent is paying a mortgage on the property. So it’s almost like you’re already paying a mortgage every month. You’re just also paying all of the extra rent that gives the owner of the property profit.
Buying a home leaves you with just the mortgage and no extra money is needed for profits and increasing real estate values.
Another issue that renters will face is that no matter how much hard work they are putting in, the amount of money they have left after paying bills will continually get smaller.
This is because when you depend on unstable rent, housing costs more for you.
It will continue to cost more and more until you either buy a home or have to move somewhere more affordable. This leaves people discouraged because when they work harder and harder, they have less and less to show for it.
Do More With Less
So what’s the solution?
How do you get to the other side of this disaster?
Well, one answer would be to simply make enough money that you outpace the growth of the real estate market and as a consequence rent.
However, this is impossible to apply because you would already have to own significant real estate to make enough money to outpace such an investment.
Instead of trying to outrun the real estate market, you can play within it and get on the other side of this issue.
If you are the one who owns the real estate, then your net worth is constantly going up due to the changing value of the property, but your living costs remain the same.
If you become a homeowner, then your monthly housing payment is secured at a constant rate. You no longer have to worry about rising rent and instead get to see the value of your home climb higher and higher while your payment for it remains the same.
Now you see the true impact of your hard work because since your housing cost is fixed when you make more money, that will be extra and not just more money to pay the raised rent.
This will encourage you to make even more money as you see your financial situation steadily getting better.
Using the power of homeownership to stop worrying about housing is a significant step in anyone’s mindset. Pulling this off will encourage those around you to start their journey and stay on the winning side of the growth of the greatest investment of all time.
This is just the beginning; once you become a homeowner, you can use what you’ve learned to find massive success in investment properties or other ventures.
By going through this process, you will also learn the significance of having good credit. Control over your housing, credit and ability gives you the keys to influencing your life instead of the government, bank, or landlord.
This gives you the best deal on your best life.
You now have the ability to accomplish more with less.
Curious About RTO?
Let us show you how to use Rent-to-Own to find a great deal for your home.
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