I am very hesitant to explain to people that I am renting. Why? Because I’m a Realtor®! My job is to sell houses, so shouldn’t I practice what I preach??
Simple answer is that I became a Realtor® at the end of my stint at the Texas Boys Ranch. When we moved off the Ranch, I could not qualify for a mortgage to buy a house, because my income was commission. In a typical mortgage loan, lenders will not use commission income to qualify you for a loan, unless it has been earned for at least 2 years.
The hard answer is that I really don’t want to own a home right now. Here is why:
- Down Payment: I have not saved up enough for a down payment
- Flexibility: I just moved into my second rent house in as many years! I’m not tied down…
- Balance Sheet: After reading some books such as Rich Dad Poor Dad and 10X I realized that if I am buying a house, I am not really buying an asset in the business since of the word. I am buying an expense. This is something that I will spend 15-40 years paying down, and eventually will have paid off…but to what end? So that I don’t have a mortgage payment? So that, finally after 40 years, I will free up some money that I can spend on…Retirement?
- Acquisitions: instead of buying an “asset” that only sucks my money away from my checking account (aka owning the house I live in), I want to buy assets with other people’s money (OPM), and allow that asset to pay me cash flows that in turn cover my rent payment for the house I live in!
So do I recommend this for you? While this is the strategy that I am using, is it for you, too? Maybe. Maybe not. It really depends on your unique situation and circumstances. Your goals and dreams.
This kinda stuff is my wheelhouse. I love talking about it, studying it, learning about it from others, and experimenting with it. If you have a different opinion on the matter please let me know by commenting, emailing, or however you want. I would love to hear your thoughts. By no means do I think that I have all the answers nor do I think that there is any 1 way to live.