Why smart people buy real estate

Posted by in Buyers | 1 comment

Why smart people buy real estate

Sep 24, 2010

Recently I have been getting a lot of questions about buying vs renting a home.  The current economic environment has led many people to think renting is better than buying.   After all, no one wants to put their money in an asset class that may decrease in value.  Throwing away money on rent seems like the lesser of two evils.

Owning a home has never been cheaper.  Home values have decreased and interest rates are at historic lows.  I know none of that is news to you.  What has happened to rental rates?  Most of them have gone up.  They do every year, and will keep going up because of the demand for rental units.  Rentals are more in demand now because fewer people can qualify for loans on homes.  So how can you cash in on this?

First, if you are renting and can afford a house, why don’t you own one?  Many people don’t realize that renting is only making other people rich by paying down the loan on the property for the owner one month at a time.  Getting rich should be something you are doing for yourself.  Only 65% of the single family homes are owner occupied.  That means 35% of the homes in Texas are owned by people getting rich on other people money.  (stat from StateMaster.com) Why are you not one of them?

Look, this is not a get rich quick idea.  It is slow, but all most fool-proof.  If you ask people like Thomas Stanley author of The Millionaire Next Door he would probable agree with me that owning your home is better than renting.  The slow and steady building of equity in a home will reward you with less exposure to risk, put you in a community of other like-minded people, and allow you to control your asset.  Thinking and acting like rich people, is one of the best ways to increase wealth.

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Ed Neuhaus

About Ed Neuhaus

Broker and founder of Neuhaus Realty Group. I started working in real estate as soon as I could push a lawnmower and help clean up investment properties for my parents. Investing in real estate has always been a passion and now I have turned that passion into a way to help others. Buying and selling homes for others is just one way I think I can make the world better. No sales pressure, no gimmicks, just an honest work ethic gets the job done. Let me know how I can help you. Give me a call today at 512.366.3720

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  • http://viewsouthcarolinarealestate.com markbrian

    True very true. Buying a home is not a get rich quick scheme but a serious investment in your future and a way to enjoy the American Dream.

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