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Old 04-28-17, 07:25 AM   #9
jeff5may
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Another of the most massive things that can be done to provide for the family is to own where you live. Regardless of what happens to the market value of real estate this month, it is less expensive than it will ever be, long term. If you are daring, find a "distressed" property and fix it. If you are vain, find something snazzy and pay more. If you are a nomad, buy an RV. The earlier in life that you can do this the better. This is one excellent way to put your money somewhere that it will without a doubt increase in value over time.

There are so many benefits to owning your home, it's difficult to choose where to begin describing them. I believe that the best benefit home ownership provides is psychological. When you have this fixed point in the world that you own and manage, it builds confidence, shelter and strong defenses against many sources of chaos that can come your way. Plus, the while home equity subject. If the world starts crumbling down around you, or drastic life changes strike, the real property provides options that would otherwise not exist.

When you rent or live on someone else's property, all the money paid to live there goes towards someone else's struggle in life. There is very little responsibility or commitment involved. You can "bug out" or be evicted in short order. It is much more difficult to manage personal finances and plan strategically in this situation. Having a regular recurring mortgage payment and a deed of ownership changes all of that. During hard times, there is no choice involved: the mortgage must be paid OR ELSE. During good times, inflation is now your friend, as it will increase your net worth as a direct result of the increase in property value. This is indeed the money you can't lose, because you have to live in it.

The whole process of buying a house is a big eye opener into the arena of bank financing, business dealings, law, and government regulations in itself. The sheer amount of paperwork, the hoops these people have to jump through, the inspection and appraisal, the approvals that must be earned , just to close the deal, is staggering. This is further proof of how important owning real property is in the world. It is a life-changing event, a rite of passage that builds your reputation.

Even if you don't feel it at first, the reality of the event will manifest itself the next time you attempt another purchase of something expensive. Salesmen and bankers have a completely different attitude towards clients or customers that are homeowners. The debt they can attach to your property is extremely low hanging fruit, a greased chute that virtually assures a successful transaction. Without this leverage, your negotiating ability is severely limited, even if you have cash in hand. If you are a sucker, the added expense of removing the attached debt will teach you how to live within your means, and encourage you not to make the same mistake again.

Last edited by jeff5may; 04-28-17 at 08:05 AM..
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