Reading time: 3 – 5 minutes
Many a Sucker will tell you that you should get a house so you can write off the interest. They will tell you it’s the best investment you can make. They will tell you it’s the American Dream. They will tell you Now you are a grown-up. They will tell you that you are just paying off someone else’s mortgage. They will tell you to do it NOW because interest rates on loans are at a all time low. They will tell you now you can nail up that picture of Shaft without your landlord taking your deposit. They will tell you about pride of ownership. They will tell you about a great sense of accomplishment by finally becoming a homeowner.
Real talk I never could figure out how paying any amount of money back in 30 years was smart. I barely like owing credit cards money for 30 days. Look I want a house myself but I’m not going to make it into more than what it is. If I go into getting a house the way most cats do I’ll be overpaying and staying stuck in one place forever. In LA it’s damn near impossible to pay for anything less than 300k unless you want to deal with some wild stuff so buying a house is a life changing event.
In all things money to tie up your chips is a problem that stunts your growth. Tying up your chips stops you from opening a business. Tying up your chips stops you from leaving a job. Tying up your chips stops you from growing as rapidly as you could. See what most cats never figure out is that if they are not going to take a stab at a business then whatever raise they get from a job is not going to be significant enough to make moves with. So tying up your making move chips in a immovable object does more than just give you a place to hang your picture of Shaft. Tying up your chips in a house leads to you having to furnish it, maintain it and think about how to improve it. This is all fine and dandy if this is the end of the line for you but if it isn’t then it will suck the game right out of your pockets.
Now I know some cat is going to come and tell me you are paying the same with rent but that’ll be a DAMN lie. See most cats see a mortgage and think that’s it but you have taxes and homeowners insurance that your average renter is oblivious too. Also buying a house means you have to take your savings to put down on the house as the 100% loan is a dead idea. There’s more to maintaining a property than most people know until they jump in and they have to buy a water heater, pay a higher heating and cooling bill and add all of your crown moldings! LOL
When you encumber yourself with a debt that lasts for multiple years then you have to realize it will retard your hustle. If you are lucky enough to have a spouse who allows for your hustle then the house isn’t a problem. But, most likely the house is a sign that you are entering the middle class trap of kids, Jack & Jill and the buzz word of the year entertaining. Although a house is looked at like money in the bank it really isn’t because if you take a 2nd loan out on it the bank will tax you for what you accrued in appreciation! If you really are in this game to make money then you have to keep your cash unencumbered for as long as possible or until you encumber your cash into the hustle that produces cash!