YOU MUST OWN A HOME!
PERIOD! When you do it, what kind of property you own is up you, but it is a MUST!
Your Brother Dre is telling you that you must at some point in your life own at least one property!
Why? Equity, it’s your friend, it’s also your husband or wife, best buddy, life partner, uncle that dances at the parties. You get my point.
Definition of Equity: How much the property is currently worth (example: A house, land, co-op or condo) after any debts that remain to be paid for it (such as the amount of a mortgage) have been subtracted
CURRENT VALUE-REMAINING DEBT=EQUITY
Suppose you’re 30 years old and buy a house for $300,000. Excellent! And when you’re 40 years old that same home is worth $450,000. You have made $150,000, while living in the home. This is a prime example of Equity,
Now if you’re paying rent (a.k.a a big fat waste of money), and you rent for 10 years from 30 to 40 years old. How much equity will you build? ZERO
A real life case: You live in the property from the age of 30 to 60. You have a 30 year mortgage (which is what most people do)
You have paid off your mortgage at the age of 60. Congrats!!
You also received a letter stating that you are eligible for an early retirement option from the school district where you work.
So that mortgage payment that you were paying of $1,500 a month you no longer have to pay.
So now all you have to pay is taxes and home owners insurance and utilities, depending on the type of property. A national average would be a combined $400-$500 for those expenses a month.
What will happen if you rent from 30-60 years of age?
1. You would have a HIGHER rent payment than when you first started. So the chances of you being able to retire at the time of the early retirement option are less likely based on your living expenses.
2. You will be making your landlord rich and pay of his mortgage.
The interest that you’re paying as part of your monthly payment is tax-deductible.
In simple terms, when you file your taxes you receive a credit for the interest paid which will reduce your tax burden and increase your refund if you are eligible for one. Similar to tax credits offered for dependent care and education.
Yes, you get money back on your taxes to own a home.
Here are some additional links to help you get started:
If you need any further assistance, please email me at Andre@HarlemLofts.com