Have you ever heard the saying, “Rent Money is Dead Money?” And have you ever questioned whether this is correct or not?
What if I was to tell you that the interest you pay to the bank for your home loan was also dead money! Most of you would have heard this saying from your parents and may never have questioned it, but the reality is that the interest on a loan to the bank is also dead money.
So whether you pay rent for a house or rent money from the bank to buy a home, they’re both costs. For most house holds they’re the biggest cost you’ll encounter in life and therefore it would pay to do some research and fully understand the implications of both.
Have a look at this example to see how the cost of renting is actually cheaper than owning your own home. You’re actually better off renting and buying an investment than you are to buy the same home to live in by about $69/wk in this example. If you then take into account rates and tax depreciation then the real difference can be as much as $200/wk.
Now I’m not saying you should sell up the home and go and rent, but if you’re in that phase of life where this type of decision is coming up then I’d love to meet with you and help you explore the choice that’s best for you.
You may also find that it’s not socially acceptable for your family to rent, to save $50 a week, but if you found out it could save $500 each week, then maybe it would be worth it.
Before you make one of the biggest financial decisions of your life, why not take advantage of this complimentary time together that I am offering you. The only cost will be an investment of your time, but the benefit could ultimately be your financial freedom.
This article has been provided by Phil Game at Astute Investments. Please click on this link for additional information and contact our office if you would like to discuss this further.