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Real Estate Information |
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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: Real estate inquiries by wealthy New Yorkers into Florida properties jump 50% after Mamdani primary win Fox Business Residential real estate developers cut jobs as downturn deepens The Globe and Mail Dave Ramsey Saves Listener With $1 Million in Her 401(k) From Becoming a ‘Victim of the Real Estate Market’ Realtor.com Real estate CEO warns of growing ‘exodus’ as people have ‘given up’ on California — but where are they going? Yahoo Finance Compass to share exclusives — if brokers, MLSs play by 2 rules Real Estate News by RealEstateNews.com Russian Demand for U.S. Real Estate Surges 78.5% The Moscow Times Providence Hill Real Estate owners buy office building near Tuckahoe HQ Richmond BizSense What renters really want | Real Estate Newsletter Inquirer.com Nantucket’s Workers Are Living on the Margins The New York Times OT Real Estate Spotlight of the Week: 1555 Graves Lane The Owensboro Times Property transfers: Marion County sales range from $20K to $390K The Marion Star Here are businesses on the move in Marin, Solano, Napa, Sonoma and Mendocino counties The North Bay Business Journal Despite signs of market rebalancing, real estate in this NJ town remains hot. Here's why Bergen Record Real estate sales in Peoria, Tazewell and Woodford counties for July 12, 2025 Peoria Journal Star $1.225 million Symmes Township home sale among the week's top property transfers Cincinnati Enquirer Homes in Lubbock County sold for higher prices recently: See how much here Lubbock Avalanche-Journal Homes in Cumberland County sold for higher prices recently: See how much here The Fayetteville Observer A Look At Plymouth Co Real Estate Numbers WATD 95.9 FM NYC Real-Estate Execs Throw Money Behind Adams to Counter Rise of Mamdani The Wall Street Journal Berkshire region real estate sales – July 11, 2025 The Berkshire Edge Real Estate Transactions sungazette.com Berkshire County Real Estate Transactions for June 23-27 The Berkshire Eagle TIM SCOTT REAL ESTATE - 83275 Caledonian Record Business Spotlight: Trujillo Commercial Real Estate Group The Paso Robles Press Westmoreland County Real Estate Transfers The Latrobe Bulletin Agent-built AI chatbot serves up real advice with a sense of humor Real Estate News by RealEstateNews.com A tale of two Floridas: Real estate industry torn over DeSantis' push to eliminate property taxes Fox Business Property transfers: June sales range from $11K to $5.8M in Crawford County - Bucyrus Telegraph-Forum Property transfers: June sales range from $11K to $5.8M in Crawford County Bucyrus Telegraph-Forum Real estate investors are purchasing more U.S. homes as high prices lock out would-be buyers CBS News LOCAL REAL ESTATE TODAY 7.11.25 KQEN News Radio Don Fenley: Tri-Cities housing market sees uptick in June Kingsport Times News Tampa real estate investment firm under investigation for potential deceptive practices Florida Politics Florida real estate: See the most expensive home sales across the Treasure Coast in June Treasure Coast News Weekly building permits, real estate Boca Beacon Homes for Sale in Manhattan and Brooklyn The New York Times RLTY: Reasonable Real Estate Income For Now (NYSE:RLTY) Seeking Alpha Department of Taxation and Finance dos.ny.gov 2025-2030 Five-Year Housing Market Predictions U.S. News Real Estate Dawson County weekly real estate transactions, July 11 Central Nebraska Today EG Real Estate: 8 New Listings & 5 Sold East Greenwich News How a legal battle of real estate titans affects home buyers Straight Arrow News SDCERS to lift infrastructure allocation as it trims real estate IPE Real Assets Mortgage Rates Today: The States Offering Lowest Rates – July 11, 2025 noradarealestate.com NEO's industrial real estate market loosens slightly but remains tight Crain's Cleveland Business Jackson State To Offer Real Estate Course Radio NWTN Michael Guthrie discusses real estate uncertainty amid Charlottesville zoning freeze Cville Right Now Patrick Cadle joins Grist Real Estate Mountain Messenger Queens real estate trends: What buyers are looking for, according to Compass agent Thomas Caramanno Queens Post Real estate news: 18-unit apartment complex in Surf City fetches $7.4 million Orange County Register The Seyon Group Acquires Industrial Portfolio in North Andover for $12.5 Million Boston Real Estate Times New Hampshire housing market sees 65 straight months of growth The Laconia Daily Sun Real estate boss targeted in San Francisco with smear campaign The San Francisco Standard Confusing housing stats & real estate nerds Sacramento Appraisal Blog Hawaii residential real estate experts on negotiating and marketing homes in 2025 The Business Journals Navigating Trump's Tax Megabill: Winners and Strategies in Real Estate, Manufacturing, and Energy AInvest Developer, neighbors worked together to decide how a key corner of Austin will look The Business Journals Where are home prices falling most in America? This SWFL community made top of the list Naples Daily News Real estate feels weird right now — but not broken Rome Sentinel Fond du Lac County property sold for $700K in real estate transfers for June 30-July 3 fdlreporter.com |
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