People commonly think real estate is a great investment because property doesn’t depreciate, but this isn’t necessarily the case anymore. What if you invested your down payment into long term index funds? Is it a better long term investment to do that or rent? Here we invite you to take a hard look at all of the factors that go into your financial readiness of buying a house, and offer some other, unconventional options as well.
In this episode:
Why do you want to buy? [1:30]
What costs we need to consider [2:30]
How much time do you have for repairs? [4:30]
Remember, you’re not a homeowner. You’re the owner of debt on a home. [7:00]
Things to consider about location [10:00]
Is it better to find a place to rent? [11:00]
Advantages of renting [12:00]
Information to do a financial analysis [15:30]
Does it cost less to own than rent? [18:30]
Moving pieces in the analysis [23:30]
Your situation is personal and will dictate your decision [28:30]
Detailed financial analysis worksheet walkthrough [32:00]
How to get someone else to pay your mortgage [54:00]
If you want to watch this instead of listen, go here to watch on YouTube.
Resources:
Download the worksheet Dave uses for this podcast here.