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Why You Should Rent To Live And Buy To Invest
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." Rent Your Home; Don't Buy It; From the desk of Colm Dillon ... Hello Colm here ... So Why Do The Majority Of Us 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! In The Banks Accounts, That Must Mean, That In Your Personal Accounts Your Home "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 further complicates this equation. In a scenario like this every time real estate is bought or sold and not rented, there are Stamp Duty, Legal Fees and agents Commission to be paid PLUS the costs you expended on decorating each home. Add it up! You are talking about 'many' tens of thousands of dollars paid by you as a direct result of the choice you made to Buy Real Estate To Live In out of your net after Tax Income. So Phil told his audience, "he has rented his real estate accommodation for more years than he cares to remember." "Renting," he continued, "allows me to change my place of residence, at the lowest cost, having regard to my family's changing needs." He further improves the deal by pre-paying his rent, sometimes for a number of years, and getting a handsome discount from the landlord. When his needs or mood changes again, he just moves on and repeats the process. "But what about all that lost rent he had to pay?" I hear you say, "that surely reduces your wealth development." And I say, "what about all that interest you pay on your non tax deductible home loan?" Understand 'Rent and Interest' are money that comes out of your 'net after tax' pocket, we just call them different names; that's all! In Phil's case he has clearly segmented his personal real estate accommodation, as rental, from his real estate investment ownership accommodation, maximizing the benefits of the wealth growth tools and enhancing his wealth development with little interruption to his lifestyle. The Real Estate Development Coach Author of "Residential Development Made Easy" Copyright Colm Dillon, October 2003 Colm Dillon author of "Residential Development Made Easy" the only 'How To' Become a Developer eBook, selling in 38 Countries, has developed $1.2 Billion worth of real estate - read more on his web site http://realestatedevelopmentcoach.com/realestatedevelopment.html
MORE RESOURCES: L.A.’s Real Estate Upfronts Reveal Penthouse A at Rosewood Residences Beverly Hills Hollywood Reporter Erie County real estate transactions Buffalo News Worcester County real estate transfers, Sunday, May 19 Worcester Telegram Real estate mogul cautions about avoidable mistake when buying a home, explains how to avoid 'drowning' Fox Business Coloradans negotiating lower fees for real estate agents with new law on horizon Colorado Public Radio Massachusetts real estate transactions for Hampden, Hampshire and Franklin counties May 19, 2024 edition MassLive.com Portside Real Estate acquires Belgrade Lakes brokerage Kennebec Journal and Morning Sentinel Illinois real estate: Home sales in Peoria, Tazewell, Woodford counties Peoria Journal Star Slow April real estate market among Pueblo's top business news Pueblo Chieftain Hawaii Real Estate Sales: March 11-15, 2024 Honolulu Star-Advertiser Luxury Homes Are Booming in These 10 Unexpected Cities in 2024 Norada Real Estate Investments Real Estate Investment and Finance Hunton Andrews Kurth LLP REAL ESTATE | A look inside The Lofts at Cedar Lake on the campus of Cedar Community washingtoncountyinsider.com Wellesley resident Peter Covo joins Conn Kavanaugh as partner in firm's real estate practice The Swellesley Report Letter to editor: On recent misinformation regarding upcoming changes to the real estate industry Woodland Daily Democrat Revised Mortgage Rate Predictions Signal HIGHER Rates in 2024 Norada Real Estate Investments Top 10 Brooklyn Listings: A Flatlands Standalone Brownstoner Berks County real estate transactions for May 19 Reading Eagle REAL ESTATE | Check out Braund's Flooring & Remodeling LLC in West Bend, WI washingtoncountyinsider.com Increases in interest rates stress commercial real estate Richmond Times-Dispatch Private Advisor Group LLC Purchases 1425 Shares of Doubleline Commercial Real Estate ETF (NYSEARCA:DCMB) Defense World STAR resource center Department of Taxation and Finance Egypt boasts real estate portfolio valued at $200bn, ready for international export - Dailynewsegypt Daily News Egypt Amalgamated Bank Trims Stock Position in Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) Defense World Celebrity Real Estate Realtor.com News Kenosha CubeSmart storage facility sold to new owner Kenosha News The Properties High Interest Rates Can't Touch The Wall Street Journal Connecticut real estate law changed after MV Realty investigation Eyewitness News 3 $6 million home was Houston's top residential real estate sale of its week (PHOTOS) Houston Business Journal Real estate transfers: May 17, 2024 RiverheadLOCAL Apollo Commercial Real Estate Finance, Inc. (NYSE:ARI) Stock Position Reduced by Victory Capital Management Inc. Defense World News anchor sells luxury Scottsdale home he built for $6M The Business Journals Robert Willett may be targeting female Realtors in Northeast Ohio Akron Beacon Journal 10 most expensive homes sold in Cuyahoga Falls, May 6-12 cleveland.com China Says It Will Start Buying Apartments as Housing Slump Worsens The New York Times China's real estate market sees surge in weekend consultations and trading, boosted by accommodative policy Global Times Real Estate Mogul Grant Cardone Closes Largest All-Cash Multifamily Deal In South Florida This Year Yahoo Finance Mid-May Greenwich Real Estate Market Report Greenwich Sentinel Refined Real Estate: Unique Leschi home with lake views lists for $1,395,000 seattlerefined.com London Real Estate Is About to Get the ‘Selling Sunset’ Treatment Hollywood Reporter What's real estate wellness? Fortune 10 most expensive homes sold in Portage County, May 6-12 cleveland.com Real Estate Newsletter Articles this Week: Housing Starts Increased to 1.360 million Annual Rate in April Calculated Risk Billionaire Frank McCourt raises his hand to buy TikTok Business Insider Should I Buy a House Now or Wait Until 2025: Expert Forecast Norada Real Estate Investments Dodge County Real Estate Transfers Fremont Tribune Why Renting Still Makes More Sense Than Buying in Major US Cities Business Insider Ellison sues real estate broker Chad Banken over alleged schemes involving contracts for deed Star Tribune Busch relative settles squabble with Clayton investors over real estate trust St. Louis Post-Dispatch Home listings are on the rise in southern Colorado, while other indicators show a slowing real estate market Colorado Public Radio Southern fast-food chain Cook Out buys Tampa real estate Tampa Bay Business Journal |
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