5 Reasons Why You, With the Salary Job, Should Own a Home (Yes, You!)
You have a salary job, but you don’t own a home??? Ok, tough love time...
As someone who bought their first house as a first-year teacher with hella student loans and has since bought 8 more properties, reaching a net worth over $1mil, I want to know more about WHY. (I still have student loan debt, btw)
Look, you might not want to make real estate your life, like I have. I get that. What I don’t get, is why you’re continuing to rent while you make excuses about why you’re not ready to build wealth by owning property.
“I might move in the next five years”
“I’m not handy”
“I don’t have a partner”
“I don’t have a huge amount in savings”
“I don’t want to be tied down”
“I don’t have magic money”
“I have student loans”
And on and on! Phew, I’m so relieved I wasn’t bogged down by the limiting belief that owning property is inhibited by any of the above.
Here are my top 5 reasons that you should own a house if you have a salary job:
First Time Buyer Programs!
/If you have more than $20,000 in savings skip to the next reason/
There are multiple programs which allow you to buy a home with literally nothing down. If you’re able to qualify for a mortgage (which you are if you’re making anywhere at or above $40,000 per year), then you’re able to buy a home. Yes, your interest rate will be a bit higher. BUT, you’ll get into the market before you were otherwise able to if you had waited to save. This will likely more than make up the difference between what you pay in the tiny interest bump and the amount you’ll pay if you wait.
2. Interest Rates are at Record Lows
They’re giving this money away!! A couple generations ago, people were buying houses at 15-20% rates. We’re as low as 3.5% right now! BUY! Get a fixed rate mortgage and you will be in a WILDLY better place financially in 30 years than if you continued to rent. People cannot predict the market y’all. They’ve been predicting a downturn for years and I’m still covering every single mortgage I have plus cash flow with OTHER PEOPLE’S RENT MONEY ---> which brings me to my next point
Not only are you making a solid long term investment according to historical data, you have the opportunity to produce income with your investment (!!!!). Whether it’s roommates, studio space, a back house or short term rental, you have the ability to control the ways you pull income from your property, especially if you buy with that in mind. If you’re coming up on a tight month, rent a couple rooms out! Cover that mortgage in ways you’re not able to cover rent. FIRE blogs (Financial Freedom, Early Retirement) are preaching about savings rate, but imagine your savings rate after reducing your shelter expenses to nearly nothing, potentially even POSITIVE. I haven’t spent a dime on living expenses since 2013 thanks to my property income. I’m probably in a better financial situation than you are. (But maybe not, I’m gettin’ real fired up right now)
4. It’s Such a Breeze for Salaried Employees to Qualify for a Mortgage!
Speaking from the freelance, 1099 life, it is HARD to get a mortgage if you don’t have a regular paycheck. Take advantage, you spoiled freak! Ha, but really. It’s a straightforward process, especially if you don’t have much debt. However, even if you do, it’s likely that you’ll still qualify, just for a bit less. The key is, NOT to spend your max budget anyway, so you should still consider trying to get qualified. I urge you to talk to a lender to see what kind of position you’re in before you make something up in your mind. My clients are surprised by their budget everyday!
5. Paying Off Other Peoples’ Mortgage is Depressing
By paying rent, you’re growing someone else’s wealth every month and decreasing your own. That sucks. If you’re going to move in five year, that sounds like a great opportunity to grow your equity in those 5 years, convert your first home purchase into a rental property and buy again in your new city. In 5 years, you’ll absolutely cash flow on that property with rents rising. STOP MAKING OTHER PEOPLE RICHER AND YOURSELF POORER !
Sorry if this was aggressive y’all. I just want you to grow your wealth and I don’t get why some of y’all are content in your mediocre financial state! Let’s grow our wealth, which will grow our freedom and doesn’t everyone want that?? BE FREE!