Why you should Rent a place to live in and Buy a place for Investment - Did you know that in your Bank’s Accounts “Your House” is placed in “Their Asset Book.” That means that the house you own and live in, is a “Liability.”
That Seems A Provocative Thing To Say,
Don’t You Think?
From the desk of Colm Dillon …
Hello Colm here …
Do The Exact Opposite;
We Buy & Don’t Rent?
Countless articles have been written over the years on the wealth ‘make up’ of the richest people. While the percentage may vary depending on the individuals leaning, the real estate proportion will vary between 20% to 35%.
Here’s a thought for the day; It’s the basis of this report; It’s one of the Tools you should use to create Wealth; so think about it before moving on!
Your House Is In
“THEIR ASSET Column”
“IS A LIABILITY”!
I want you to keep that thought in your ‘open mind’ as you grapple with this new concept. I write these articles to make you THINK and that can sometimes make you uncomfortable.
Here goes!
It’s Hard to Justify Borrowing Money To Buy A “HOME.”
Sorry, but it’s economically very difficult, in wealth development terms, to justify buying real estate for you to live in, if you have to borrow money to do it, unless you put a massive monetary value on your emotions.
Please understand my purpose in writing this report and associating it to a site about real estate development.
A lot of us have to be financially smart to be able to accumulate enough capital to do our first development … so this is for those people … but maybe there are a few ideas in it for the rest of us as well … so read on.
This wealth development concept, based on renting, was given to me many years ago by one of the most interesting and provocative speakers on economics I have ever heard.
He’s name is Phil Ruthven and he created a company, Ibis International, an economic analysis and forecasting company. Phil also writes for the Financial Review and is in high demand as a speaker on economics.
By any reasonably observation, Phil is successful; both professionally and financially and so can buy a home, if and when he wants.
He doesn’t, he chooses to rent and his reasoning goes something like this.
“When I started life as an adult,” he said, “I was a ’single person’ and my single status defined my real estate accommodation needs.
Later I became a ‘twosome’ and my real estate housing needs changed for the first of many changes.
When the twosome became threesome or foursome, by definition, our housing needs changed yet again.
Later in life, when kids grow up I will become a twosome again.”
Now Phil contends that on top of our family profile changing, our work situation also changes; maybe a move interstate, which