Sign up for my FREE Passive Income Masterclass http://www.mikewolfmastery.co/masterclass if you want to learn my unique system to creating true passive income with real estate, reduce your financial risks, and remove the day-to-day hassles of being a landlord - Renting Versus Buying A House - A Must Watch Before Purchase
Are you in the middle of confusion when it comes down to renting versus buying a house? Watch my video and you will know what would be the best option for you.
Hey, Mike Wolf here from Mike Wolf Mastery coming to you from Boston at Fenway Park, home of the Boston red sox and we’re at America's oldest stadium. Of course, I'm not here talking about baseball. In fact, I know nothing about baseball; I am here to talk about real estate. I had a conversation with a good friend of mine who lives here in Boston yesterday, and it turns out he wants to get out of his job and get himself a new one. He wants to become an entrepreneur, but he can’t make the leap because he doesn't have the cash to do it. It turns out he owns property worth seven or eight hundred thousand dollars here. I told him that even though I'm into real estate, sometimes owning a home doesn't make any sense; you have to look at what the cost of ownership versus the cost of renting. Quite often, when we want to obtain our own homes, we tend to buy homes that are bigger than what we need, more expensive than what we need, quite often when we work out what it cost us to pay for insurance, repairs, and mortgage. You know at the end of the day, quite often, we only take into account the appreciation, down the road we didn't make as much as we thought. Therefore, I'm a huge fan of buying properties that make sense, properties that are going to put money in my pocket and create a lifestyle for me. I like to have revenue properties in cities that make sense and buying properties in places where rent is high compared to the purchase price, and not the other way around. I told him if you're going to sell your $800,000 home, well-having equity in a home that believes it or not doesn't do you much good. I know our parents and our grandparents taught us to get our homes paid off and life is going to be great when you don't have a house payment, I would disagree with that. I think that having a cash flow is king. I can’t go to a restaurant right now or to an airline and say: hey, you know what? My net worth is x amount so you should give me food or you should let me on your plane. I can’t do that; I need cash flow, I need actual cash in pocket to support my lifestyle and to put food on my table and to do the things I want to do. So, freedom really comes from having that cash flow consistently every single month. Hence, he could think similarly. Let's say his property's worth 800 thousand, he could sell it and buy like eight revenue properties in a place like Atlanta, which is my favorite marketplace at this time and probably generate around sixty or maybe even seventy thousand a year in income passively while he's sleeping. That money is going to come in, and that would allow him to grow and you know, probably jump out of his job and get into that new career that he wants to start. So, it's essential always to measure the cost of home ownership and in specifically in some cities that make a lot of sense. If I lived in Atlanta, I'd be a homeowner all day long. It doesn't make sense to be a renter there. If I lived in Boston I would definitely be a renter, if I lived in California most California would be a renter, if I lived in New York or Canada right, I would rather be a renter and have my money working harder for me, creating that passive income so that I could go and live the life I love, which is what I'm doing right now. So, I'm Mike Wolf, thanks so much for tuning in, and if you find this helpful, please subscribe to my YouTube channel. Check on my website mikewolfmastery.com and share this with anybody who might benefit from this information, we'll see you soon.