Get New Posts via Facebook MessengeriTunes


Hey, Mike Wolf here, coming to you from a beautiful day in London, England. I’m in the Trafalgar Square area. If you’re tuning in, chances are you want to know what my thoughts are on home ownership for a principal residence. For most people, it just seems like a no-brainer. Of course, you should own your own home. That’s what we’ve been taught from generation to generation. I was informed that, too.

For some people, it might make sense but the majority of people have a contrary opinion and here’s why. In most places, the cost of ownership is higher than the cost of renting. What I mean by that is by the time all said and done, the homes will typically appreciate if you own a home long enough, but you have all these expenses to cater for. You’ve got the upkeep, property taxes, and the cost if you have a mortgage.

As we all know, at the beginning of a mortgage, it’s almost all interest. You’re paying very little principal down and fees associated with that. To get out of the mortgage early, there are fees associated with that as well. Also, there’s what’s called an interest rate differential, IRD, which means that if interest rates change, quite often you’re going to be responsible for paying the money that the bank is losing, what they would have made off you if they had the loan up for the rest of the term. You got to make that back.

So, it really doesn’t make sense for most people to own their own home. You’d be much better off taking that same money and buying revenue properties where other people are paying your mortgage fee. Where other people are paying those property taxes, it all comes out of the rent, and where you’re making a profit off it and having those homes appreciate.

It makes sense to do things in the right order. What I would recommend for most people is rent early on. Get your money working for you as hard as possible. Have that money create more money for you. Have it working really hard to create passive income for yourself. Then down the road, as these homes that you bought as rentals appreciate, you’re going to be in a perfect position financially. You’re going to be financially free. Then take some of that money, maybe sell one of those homes, and buy whatever home you want at that point because then money is not going to be an issue to you.

Doing things in the right order makes all the difference in the world that we live today. If you buy things like your principal residence first and you buy a car, that’s more expensive than what you need. If you buy all these things, in the short term, it’s going to stop you from having financial freedom in the long term.

That’s my advice. If you found this helpful, I recommend you subscribe to my YouTube channel, share this with your friends, and also sign up. If you click the link below, it will take you to my passive income masterclass, which is absolutely free, which is going to give you a whole bunch of pointers on how you can get that money working for you sooner than later, and how to have other people doing the work for you so you can have a lifestyle that you love. Once again, I’m Mike Wolf. Thank you for tuning in.

I look forward to seeing you soon. Take care.




  • Renting Vs Owning A Home - Are You Wasting Your Money
  • Renting Vs Owning A Home - Are You Wasting Your Money
  • Renting Vs Owning A Home - Are You Wasting Your Money
  • Renting Vs Owning A Home - Are You Wasting Your Money

You may also like

Why Invest In US Real Estate? US vs Canada Market
How I got started in real estate and why you should start too!
How To Pick A Real Estate Market Simplified – The #1 Factor in 2021/2022

Eva Werthmann

Leave a Reply