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Hey, Mike Wolf from Mike Wolf Mastery is here again, coming to you from Berlin, Germany. Today I want to answer a question I get asked a lot, and that’s, “Should I own my home or should I rent my personal residence?” A lot of people assume I’m going to say you should buy because apparently I’m a real estate guy and I love real estate.
However, in most cases, I would teach you the opposite for a couple of reasons. One, when you work out the cost of ownership, when you look at the cost of buying a property, putting a mortgage on there, the mortgage fees to get started, repairs, property taxes, insurance, all that stuff, even though we like to think, “Hey, I bought this X number of years ago for this price, and I sold it for this much.” There are a lot of bills you pay in between to upkeep that property.
For most people, it would be cheaper to rent as opposed to purchase. And on top of that, is the sooner you get your money working for you, the better it is for your life. Meaning, I don’t want to pay for my personal residence but I want to have my money working for me, I want to have revenue properties. The sooner you can start having the money to work for you, the sooner you can stop trading your time for money, which is so important.
Because a lot of times, people take a big chunk of cash to buy their personal residence and it’s stopping them from investing and creating that passive income and creating that freedom that they so desire. Instead of buying your home first, then investing, invest first, and when you got lots of money and enough money coming in at the end of every month to support your lifestyle where you can do whatever it is you enjoy, then buy whatever you want, then money will be no object for you.
I will make one exception to that. I sometimes meet people that are extremely poor at saving money, and as soon as they have a dime in their bank, they’ve got to spend it. For those people, buy a home as it’s a forced savings plan for you. If you rent, you’re probably going to piss all your money away on depreciating assets. Don’t do that. For others, you can start saving money to get your revenue properties. That’s going to help you get the life of your dreams.
Thank you so much for tuning in. I’m Mike Wolf. If you enjoyed this video, make sure you like it, comment below, and share it with any friends that you think might benefit from it. Subscribe to my YouTube channel where you get all my latest videos as they come out. Once again, I’m Mike Wolf. Thanks for tuning in.
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