How to make money while you sleep
A house is probably the most serious investment many of us will ever make. So take it seriously. Tweet
Highlights
Buying a house is a very good way of being forced to save money.
If you buy at or below market value, owning a house is like eating your cake and having it, too.
It’s always better to buy the worst house in the best neighborhood.
As a rule, houses appreciate in value faster than condos.
Saving at gunpoint:
Force and fear. That’s how many of us manage saving money, since saving and investing usually loses out to goofing off and traveling on the list of real-world priorities and we have to be forced to do it.
An easier way: just sleep warm and dry in a house you bought at the right price. That way, while your new neighbors are out painting and trimming and mowing and driving up the value of the neighborhood, you’re snoring all the way to the bank.
The easiest way to make money is to buy a house.
Buying a house is a very good way of being forced to save money. Mortgage payments are a must-pay; they should be faithfully paid, even at the risk of all others. Skip those, you lose everything. So if you buy at or below market value, owning a house is like eating your cake and having it, too. You live loose in your investment, and, as the property appreciates in value, you also build equity for securing other loans. It’s quote literally an enforced savings plan.
Condo or house?
As a rule, houses appreciate in value faster than condos. When values rise on houses, homeowners profit. When values rise on a condo, developers profit. And older homes, after needed repairs, usually appreciate better than new homes.
Rule of thumb: From an investment standpoint, it’s always better to buy the worst house in the best neighborhood, not the best house in the worst neighborhood.
