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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: How Jordon Hudson, 24, amassed $8 million real estate portfolio within months of meeting Bill Belichick New York Post Hyderabad blues: Real estate sales in city see biggest drop The Financial Express Real estate transfers in Adams County from April 21-25, 2025 Muddy River News Real estate report: Three key factors are behind Louisiana’s surge in investment Baton Rouge Business Report Exclusive: Trump's first real estate project in Qatar to be announced by Qatari Diar, Dar Global Reuters Graham Norton’s Manhattan Carriage House Is Listed for $5.595 Million The New York Times ArchCrest opens new real estate division Northern Nevada Business Weekly Advocacy Scoop: New NAR Poll Unveiled—Tax Reform, Real Estate Policy and Voter Opinion National Association of REALTORS® Two key real estate bills take aim at industry regulations Real Estate News by RealEstateNews.com Cattaraugus County: Ellicottville home, Machias property lead March real estate sales Olean Times Herald Licking County real estate transfers for April 14-18 reach $1.4 million in Newark The Newark Advocate Richland County property transfers recorded April 21-25 Mansfield News Journal Fond du Lac County property sold for $530K in latest real estate transfers for April 21-25 fdlreporter.com Ranking Arizona: Top real estate law firms for 2025 AZ Big Media Mid-America Real Estate closes sale of 34,431-square-foot shopping center in Midtown Detroit REJournals People on the Move: New execs at HomeServices, RE/MAX Real Estate News by RealEstateNews.com Property transfers: Nursing facility, rental complex sell for more than $1 million Canton Repository Alexandria Real Estate Equities Looks Juicy But Uncertainty Keeps Me Sidelined (NYSE:ARE) Seeking Alpha The Pipeline: Commercial real estate roundup for 5.2.25 Richmond BizSense Raith seeks to raise $700m for non-core US real estate fund IPE Real Assets Blackstream opens luxury office near Lake Keowee GSA Business Report April real estate transactions CraigDailyPress.com Franklin Real Estate Development finds inspiration in Greenville’s history upstate business journal 'Slow and steady': How a couple retired early by buying one rental property a year with 5% down payments Business Insider Solano Real Estate Scene: Slow down, buy a house Daily Republic Secluded estate near Ann Arbor is Washtenaw County's most expensive home. Price: $8.99M Detroit Free Press Job Market Defies Tariff Fears to Remain Strong in April, Offering Jolt of Confidence to Homebuyers Realtor.com Solano Real Estate Transactions: May 2, 2025 Daily Republic How the Dallas Commercial Real Estate Industry Could Fare in the New Tariff Environment - D Magazine Berkshire region real estate sales – May 2, 2025 The Berkshire Edge Here's what local experts say the Baton Rouge real estate market will look like in 2025 The Advocate Real estate performance in Quarter 1, and some perspective Garden City News CENTURY 21 Real Estate and Institute for Luxury Home Marketing Launch Collaboration With New Q1 2025 Luxury Market Report Franchising.com SDSU: SDSU Imperial Valley alumnus finds new meaning in real estate career Imperial Valley Press Online Abundant listings and stable prices not enough to drive April sales in the Fraser Valley GlobeNewswire What's the most expensive property sold in Rhode Island? May 2 real estate transactions The Providence Journal Tarek El Moussa Calls for 'Real Reform' in Real Estate Industry: 'I Saw Families Lose Everything' House Beautiful Report: Health care real estate gains greater favor in Twin Cities Finance & Commerce Real Estate Magnolia Reporter Costar Group (CSGP): “Bloomberg Of Commercial Real Estate” Insider Monkey Real estate transactions: Week of May 2, 2025 Inside Tucson Business US Commercial Real Estate Leader Peachtree Group Launches 114-Room Residence Inn in Ocean Township, Tapping into Jersey Shore’s Expanding Hospitality Market Travel And Tour World Status update: 7 Upstate commercial real estate projects upstate business journal When Donald Trump mocked a real estate icon for having a 'Trophy Wife' The Economic Times Real Estate: Market Pulse (April 2025) Seyfarth Shaw LLP Compass goes retro with launch of ‘Private Exclusives Book’ - Real Estate News by RealEstateNews.com Compass goes retro with launch of ‘Private Exclusives Book’ Real Estate News by RealEstateNews.com How to Choose the Right Real Estate Broker Investopedia Real estate report: Industrial market remains ‘chronically underbuilt’ - Baton Rouge Business Report Real estate report: Industrial market remains ‘chronically underbuilt’ Baton Rouge Business Report Allied Properties Real Estate Investment Trust (APYRF) Q1 2025 Earnings Call Highlights: ... - Yahoo Inside the Family Office Advantage in Private Real Estate WealthManagement.com NexPoint Real Estate Finance, Inc. 2025 Q1 - Results - Earnings Call Presentation (NYSE:NREF) Seeking Alpha Windermere ‘confused’ about Compass’ claims of collusion Real Estate News by RealEstateNews.com 'We Are Going Into Winter': Boston Universities Brace For Real Estate Impacts Of Federal Cuts Bisnow This Week’s Premier Real Estate Listings TysonsToday Woman Arrested Again on Real Estate Forgery Charges Rural Radio Network House for Sale by Owner RiverBender.com |
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