Hey, that is Jay Sthilaire, and maybe your #1 goal is saving cash to get a deposit on your first home. There is currently a great deal of people renting and there’s a large amount of factors as to why they wish to own their own home. Two of the top reasons are: upgrading their quality of life with a larger and better place than they are renting and also invest in an appreciating asset. Saving up a down-payment is a large endeavor in terms of saving, and while every little bit helps, it is much smarter to focus on the greater expenditures to save more quicker as far as value goes. This is possibly the biggest hindrance for your savings for somebody thinking about buying their own residence: monthly rent.
Let’s discuss your rent!
Let us start by considering renting with all its nuances. What is rent anyway? Rent is the regular wad of cash which you pay out to your landlord month in and month out. Whether you are renting a space in a sizable room in somebody’s house, a large apartment in a multi-family house, or even a small residence from a private owner. Rent is money that goes towards having a roof over your head and it comes out of your pocket each month. The main element of using this definition is the fact that money flows from your wallet which you will never see again. There is no take away from it; it’s only payed out without a return.
Be Your Own Asset
The sooner you are able to stop renting, the sooner you’ll quit giving away your cash to someone else. By owning your own property, you will be participating in the appreciating of your homes equity in (a significant long lasting expenditure and a hedging bet against inflation), in addition to paying down a Land Contract or Rent to Own (R2O) over time to build up equity within the initial cost of your house. However, your foremost objective is to pay your outstanding balance off on a R2O or your Land Contract as soon as possible. The sooner the Land Contract or R2O is repaid, the earlier you will achieve financial freedom. What is your motivation for to express to your landlord “I am so excited to prepay my rent down for the entire year as soon as possible!”? Next year, you’ll still have to pay it! Rent never goes away. So there will be no end in sight. Imagine paying off the balance on a Land Contract/R2O and having all that extra monthly income. It could be an extra $500, $750 or even $1,500 in your pocket every month! You will never have that option as long as you are renting. So the question I hear you asking is: “How do I get there!?” Let’s brain-storm a bit.
Downgrade Your Apartment
Since we’ve reviewed the obvious advantages of a Land Contract or R2O and also the difference between owning and renting, let’s delve into strategies for saving money on rent to save a down-payment as fast as possible for a Land Contract/R2O. One of the best techniques would be to simply downgrade your current living situation. Do you really require the three bedroom apartment you are currently renting? Maybe you could limit it to a two bedroom or studio apartment. Do you want to reside in a brand new luxury residence with all the trimmings? Perhaps an older apartment in a smaller place will do just fine. The main element in downgrading is always to understand that you’re saving the excess cash…that’s the whole point. Guaranteed, you will be making sacrifices in the short term but in the long term you will own your own personal place, which will be as elaborate or rustic as you want. It’s a sacrifice of the short term gratification for long term results. That is what dreams are made from…
When is it Ok to Rent?
Don’t get me wrong, I think there are a few (“a few” I said!) situations when renting is a good option. The most effective one is where you want to settle down, but you don’t know where yet. Purchasing a house is a long-term investment. Therefore, if you are uncertain where you want to stay and are not committed to an area for the long haul, you will want to give yourself time. There is nothing wrong with renting while you are providing yourself time to assess your long term goals. Taking your time to perfect your savings methods and earning more funds is really a very smart choice.
Why is Renting a Terrible Idea?
The key reason I hate renting is my hard earned money is going to some other person in very large quantities instead of building up my own personal financial security. If you stopped to think about how much money impacts our daily lives, you would gain a much higher motivation to make some like decisions. How many days a week do you go without thinking, stressing and agonizing over your money situation? I know I do at times! Marital fights, sleepless nights and even psychological difficulties can arise just because of that Green Paper! Monthly rent may be the single biggest bill the majority of us have and in the long-term you have nothing to show for that money. Furthermore, you are making someone else wealthy, specifically, your landlord. Apartments are businesses. The owners are currently charging rents that are much higher than their own mortgage payments. Put simply, they’re making a profit, often times a really big one.
Seek Out Not so Obvious Housing Options
Saving money is usually about thinking outside the box a bit. If you currently live in an apartment on your own, perhaps you could undertake a roommate. Your rent will be split in two. Instead, probably somebody you know is looking for a partner and you leave your present house but move in with somebody else for an amount that is cheaper. Additionally, do not forget to consider private dwellings also and people renting out a space inside their residence. Individual homeowners that are renting their residence or even a bedroom likely to give a lot more competitive rates than apartment owners because they have leverage and therefore are not in it as a business. As an extreme case, perhaps you might move in with family. However, you do not want to be considered a “free loader”. You always want to give, where ever possible. I know individuals who are using this tactic and saving up a lot of money. Saving for a down payment is something which takes time. Be wise and use caution to accomplish your goals.
Avoid Expensive Moving Expenses
You’ll want to be careful to avoid costly moving costs, if you do choose to downgrade your living situation to save money. In place of hiring movers, can you do the move yourself? Perhaps you could hire some friends pay them back with a free lunch and for helping you. If you spend a lot of money on moving, it may totally eliminate the savings of downgrading.
I invest in properties all the time and I specialize in training/coaching Real Estate Investment Strategies. R2O and Land Contracts/Lease Options just happens to be one of my specialties. If you are one of many people who might be trying to buy your own house without the usage of banks, then we should get together. I have a totally free report that you may find extremely useful.
It Decision Time!
One of the greatest opportunities and enjoyments in existence is buying your own house and taking care of it. You can find in buying versus renting, both economically and in your standard of living, clear advantages. Make a decision to make major life changes in the coming year. Think beyond your field of vision about your rent and become prepared to make compromises and you may be paid handsomely on the long haul.
Here is the link to seek more information on owning your own home and here’s to your success http://www.jaysthilaire.com/report-optin/
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