Are you ready to buy a house?
I’m sure your family, friends, and the world has given you such an idea, and that’s how you got into this mess.
How you handle such a serious topic is really up to YOU and only YOU.
So before you go making probably the biggest investment of your life, let me give you a better understanding of what really happens behind your final decision.
This is no small deal and it must be treated and handled in a way that works for you.
With this post, I hope to enlighten you on several misconceptions about buying and renting as well as what I think when it comes to making a decision.
I am in no way, shape, or form a financial expert but I do have a lifestyle and experience to show for it.
Besides that, do take what I say with a grain of salt as we are all different.
We all live different lives, and we all want different things from it.
Regardless, I’m sure this post will help you understand the BS, facts, and nonsense that come with such a simple topic.
So before you listen to your aunt’s uncle’s nephew that says you need to buy a house, let me share some ideas that most will never know.
How the Idea of Buying a House Starts
Buying a house does not come to you like it’s natural, you have to do, kind of deal.
It comes to you because the dang society we live in forces it on you.
As a businessman myself, I understand how the real estate market works.
For regular old consumers, not so much.
Advertising comes in many different forms and ways you will never even notice.
You will see it in commercials, in the news, and many other obvious places, exactly the way regular old ads work.
The best form of advertising and the most subtle of them all comes right in front of you.
This ad talks and this ad influences you the most.
This ad is called your family and friends.
They are the most nonchalant of the bunch but the most powerful.
“You need to buy a house before you’re 30.”
“Buying a house is the best thing you can do for your family.”
Blah, blah, freaking blah!
Simple words like that get you thinking and ultimately allow you to make some crazy decisions.
So before any of that madness happens, I want to educate you on the process and understanding of what happens when you commit to something like a house.
What “Buying” a House Means
When someone tells you you should buy a house, please keep in mind that they are only regurgitating what they’ve heard from someone else.
TV, parents, BFFs, coworkers, and everyone who thinks they know what is needed in YOUR life.
They probably know nothing about the way money works, and they are really only trying to come off as responsible and as a know it all.
They really aren’t, and I want to tell you why.
“Buying” a house is not a great thing, but it isn’t bad either.
However, there are several things you MUST know before you even consider signing any paperwork.
There are many, but I would like to tackle the main ones.
These few will open your eyes and you will see the truth behind owning a house.
1. You Do Not Own the House
The most important of all the knows is the fact that you DO NOT OWN THE HOUSE.
Just because you got a loan does not mean you own anything.
Just because you got the keys does not mean anything either.
All this means is that the bank that you got the loan from will be making a nice percentage from you every single month.
This payment is GUARANTEED, and they are not worried about a thing.
You are the slave, and you will obey what they say.
Don’t make a payment and you are doomed.
There goes your credit and your sanity.
Once that all goes, the house will soon follow and there is not a single thing you can do about it.
2. Buying a House is NOT an Investment
I can not stand it when someone tries to tell me that they are making an investment when they buy a house.
30 years to pay off a single-family home is not a fricken investment.
At least not for you.
The bank has made an investment in you, and with all the legal nonsense involved, they literally dictate how you live.
On top of that, they will get their money regardless of what happens.
You will work your butt off at your J-O-B, and you will make your mortgage payment on time like a good little puppy.
They will sit back and collect their money all because you gave into someone’s idea that YOU should buy a house.
Buying a multi-family unit is an investment.
Buying a bunch of houses that other people will live in is an investment.
Getting one for your personal pleasure is not an investment.
Keep that in mind when you are holding that pen, ready to sign 30 years of your life to someone who could not care less if you could afford the payment or not.
3. Buying a House is a Huge commitment
The idea of buying a house is what most consumers see as “the American dream”.
That little saying is nothing more than a way for businesses to cash in on your crazy idea.
Buying a house is not a dream.
Anyone can do it, even if you have a minimum-wage job.
Anyone can buy a house, but can anyone understand what is going on?
Of course not.
Buying a house in most cases, takes about 30 years before it is paid off.
That is almost half of anyone’s life, and that does not include the 18 years it took for you to become an adult.
Add that to the 30, and you, my friend, are an old fart.
Now all the facts might be a bit of a turnoff but that does not mean buying a house is a bad thing.
I have a few great things to share if you do decide to buy.
Benefits of Buying a House
Buying a house is a great thing.
However, there is a time for such a thing.
As a slave to the 9-5 world, buying a house is probably your best bet.
As an entrepreneur, your best bet that you should not buy one until you are ready.
If you know that you will not be increasing your income by the thousands every month, you can buy a house.
Here are some of the reasons I would recommend that someone buy a house.
1. Monthly PaymentsCould Be Lower
Living on a monthly salary is normal.
Regardless of how much we make, we will find a way to spend every single penny.
Whether you are making minimum wage or a little above average, you will see that your money is gone regardless.
I’m sure you’ve heard someone say that “the more money you make, the more you will spend” or something along those lines.
This is very much true, but it doesn’t have to be.
Now when it comes to that magic number, you will most likely get a house that will fit perfectly enough to make you another paycheck to paycheck master.
This isn’t necessarily bad as you will probably pay the same amount for a nice 4-bedroom house as someone renting a 2-bedroom apartment.
For me, that is not the right investment, but for you 9-5’ers, that is probably the best.
I think this is the biggest benefit of buying a house, but it is obviously not that great.
2. You Have Full Control of the House
Renting a house has its limits.
Getting a house through the bank doesn’t.
If you feel that you need to remove a wall and open it up for that “open concept” you saw on HGTV, then you can do it.
If you were renting, you best not touch a damn thing, or you will pay for it.
As a tenant, you also must ensure that everything is clean and nothing gets broken.
As an owner, you get to break whatever you want, and you can be as filthy as you want as well.
Not to say that you should be a slob, but at least you don’t have to keep the place clean just because your landlord is on their way to fixing an AC.
3. You Can Still Sell if Need Be
Most people that buy get sold on the idea that they are stuck.
Companies close, and people lose jobs all the time.
Remember that two bedroom dream shack you just bought?
The monthly payments might not be met, and that’s just how it is.
That does not mean you curl up in the fetal position and think that it is the end of your life.
This is a time that requires you to take responsibility and figure out a way to make ends meet.
Selling the house is a great option and yes, you can still sell.
You can also do it if you get tired of your house or for whatever reason you might have.
Just because you committed to that one house does not mean you can not sell.
That’s just another one of the few benefits of buying a house.
But now, let’s get into what I feel is the best thing for most people, especially for you entrepreneurs.
Benefits of Renting
Renting is what I do, and I have no problems with it either.
I am 36 years young, and although I make more than most working ants, I am still paying the many landlords I’ve had in just a 5-year span.
I live this way for a reason, and I would like to share them with you.
So if Mommy and Daddy tells you that you should buy a house tomorrow, maybe you can show them this post.
Of course, they might disagree, but you do have you on life to live, ya know.
1. Opportunity to Grow Your Portfolio
Ever since I started adulting, the idea of buying a house never crossed my mind.
My mom and all the coworkers I’ve crossed paths with have drilled it in my head that I should buy a house, but it had almost no effect on my decisions.
I am not content with settling in almost every part of my life.
Not for mediocre pay and not for that two bedroom shack that most of you dream of.
I knew that there was a way out of the rat race, and I knew that my job wouldn’t give me the house I wanted.
So what did I do?
I turned to the internet to see how I could make more money, and it ultimately led me to the current career path I’m on.
An online entrepreneur.
I make a living on the internet, and that is how I have built my income.
It is not the most traditional of businesses, but being nontraditional is exactly why I live the life most people only dream of.
It is also the same reason I have this whole different view on buying a house.
2. Ultimate Flexibility
I have moved three times in the past five years, and I am actually proud of it.
For most, that is crazy, and that’s okay.
There’s a reason I’m not part of most and it is also the same reason why I live life on my own terms.
The same thing goes with my living quarters.
I’m the type of person that likes to try new things.
I usually get tired of living in the same house for just a year.
The only reason we are going on two years in this condo is because of the nice ocean view we have.
If that weren’t apart of the picture, we would have moved again.
This most especially allows us to live a very simple life without all the hoarding and complacency that comes with owning your own home.
Heck, if we wanted to move or even if we found a nicer place that could save us more money (to invest), we could literally get up and move.
Our lease has been up, and we are now living on a month to month basis.
Does your house allow for such flexibility?
3. You Run Things
Being a tenant does not mean you get to decide what happens with the house.
However, you do get to do whatever you want in regard to contracts and all that nonsense.
You can get up and move if you don’t feel like dealing with your current landlord.
If you discover that your neighborhood is unsafe, you can move.
Now if you bought that house through the bank, you don’t have the luxury to do such a thing.
Good luck trying to get rid of that house; we all know those things don’t happen as often as others make them seem.
Is Buying a House For You?
Buying a house is not for everyone.
At least at certain points in one’s life.
For those of you starting or looking for a career, you are definitely not in the market for buying a house.
For those of you who have a decent career and a steady income, buying might work.
For those looking to make more of life, buying is out of the question.
You need to look at your current situation and go from there.
You are the only person who knows what will work for you then, so please do not let any showoff tell you that you should buy a house.
Conclusion – Buy When it is Right For YOU
Buying a house is great.
I think it’s best to get what you want without settling for the two-bedroom shack to please everyone else.
Save some money, maybe start a blog but do something to make you more money.
Please do not think that your 9-5 is the best thing out there because you are no different than that minimum wager dude down the street.
Buying a house does not mean anything and does not determine your wealth.
I would rather rent a house and live on my terms than be a slave to my job and the banks for the rest of my life.
So before you buy a house, consider the points mentioned in this post.
I am no financial expert and don’t care to be one.
I do have experience with life, and that, to me, is enough to share the knowledge.
At the end of the day, you will know if buying a house is right for you.
You make the decisions and decide how you want to live and no one else.
Now you tell me, is buying a house your best option…right now?
Thanks for sharing what makes renting and buying a house different from each other. I found it really interesting when you mentioned that because you have a loan, that doesn’t mean you own the house now. I imagine it would be important to work with a real estate agent to get the most help possible.
Real estate agents of course want to make money so they probably won’t know what works for YOU Dennis. You can take advice but do what works best for you.