To continue the series 7 Prosperity Principles, we are upon Principle #5 – Own Your Home.
Let’s face it…in today’s economy, especially in the after-math of 2008, this part of the American dream has all but disappeared.
Many are still struggling to get back to some sense of normalcy if they were impacted by the housing crash; and others, well, they simply are not trusting enough that the housing market won’t crash again.
While I’m not licensed or qualified to give any professional analytics on the housing market, I do have a few suggestions that you may consider to implement for this principle.
When George S. Clason wrote The Richest Man in Babylon, owning your home was a huge part of the American dream and it was the one thing most American’s wanted to do. Owning a home today, can be a bigger part in a successful wealth creation strategy. Wealthy people do this easily by sticking with the plan to rent where they live, and rent what they own.
Rent where you live, and rent what you own. This strategy keeps home ownership from becoming a liability. The basic rule is that you don’t actually own the home when you purchase it, you are actually leasing it from the bank. You pay the bank interest over time and by the time you pay for that cute little house and actually do own it, you have more than paid twice what it was worth. Sometimes even more.
But in using the rule of “rent where you live, and rent what you own”, generates a surplus of revenue through the collection of rent from the tenant. The rent you collect will more than take care of the mortgage, and maybe leave a little left over to pay either part or all of the rent where you live. You won’t have a mortgage (aka liability), but you will have the ability to own the home much faster with accelerated mortgage payments, if you choose.
There are also other methods to owning a home in a non-traditional sense, but to stay with the principle we are discussing here, just remember, that owning real estate is a strategy that you can incorporate into your wealth creation plan.
Here is to your remarkable life & legacy…
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