3 comments on “How to Buy Your First House for Less Than $5,000

  1. Good write up, I see this home buying thing is working towards your best interests. I also like how you didn’t heavily stress the equity advantages of home sales; many Americans who purchased 5-10 years ago are learning that isn’t always the case. I have heard too many people say “My house is my biggest asset,” which is kind of like saying “youth is my best quality.” At some point, the party must end.

    Obviously, stable residential markets tend to appreciate over time, but their rate of growth may or may not beat other conservative investments. It may not even exceed the rate of inflation. Plus the permanent nature of real estate exposes it to risks like demographic shifts, employers leaving town, ect.

    In the end you have to live somewhere. A single-family residence should be personally considered as a liability (due to unfunded expenses), and any money you hopefully clear at a future sale should be considered a ‘windfall profit’ to your finances. Second mortgages on equity is generally a bad idea, though there are business-related exceptions. Renting is a good way to offset ‘holding costs’ if it works for your lifestyle.

    Not just my opinion, Robert Kiyosaki (RDPD) agrees with my discussion. And for the readers at home – I am a full-time professional in real estate, so this topic is not exactly over my head.

    • Good points. I meant to give you a shout-out for being one of the few in our generation with the same mindset. You definitely helped to influence some of my decisions. It was good to see someone else doing what I was just beginning to consider. I read some of Robert Kiyoskai’s work and he too makes a lot of good points!

  2. Yep, may have singlehandedly convinced me i need to stop putting it off and just buy already….money talks 🙂

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