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Millionaire To Millennials: Don’t Get Stuck Renting A Home… Buy One!

In a CNBC article, self-made millionaire David Bach explained that: “The biggest mistake millennials are making is not buying their first home.” He goes on to say that, “If you want to build real financial security, real wealth for your lifetime, then you need to buy a home.”

Bach went on to explain:

“Homeowners are worth 40 times more than renters. Now, that first home doesn’t need to be a dream home, it can be a very small home. You might literally have to buy a small studio apartment, but that’s how you get started.”

Then he explains the secret to buying that home!

“Don’t do a 30-year mortgage. You want to take that 30-year mortgage and instead pay it off early, do a 15-year mortgage. What happens if you do a 15-year mortgage? Well, one, you pay the mortgage off 15-years sooner, that means you’ll be able to retire in your fifties. Number two, you’ll save a fortune (on potentially hundreds of thousands of dollars in interest payments).”

What will it cost to pay your mortgage in fifteen years? He explains further:

“For fifteen years, you got to brownbag your lunch. Think about that! Brownbag your lunch literally for fifteen years. You can retire ten years sooner than your friends. You’ll have real wealth, because you bought a home – you’re not a renter. And you’ll be financially secure for life.”

Bottom Line

Whenever a well-respected millionaire gives investment advice, people usually clamor to hear it. This millionaire gave simple advice – if you don’t yet live in your own home, go buy one.

Who is David Bach?

Bach is a self-made millionaire who has written nine consecutive New York Times bestsellers. His book, “The Automatic Millionaire,” spent 31 weeks on the New York Times bestseller list. He is one of the only business authors in history to have four books simultaneously on the New York Times, Wall Street Journal, BusinessWeek and USA Today bestseller lists.

He has been a contributor to NBC’s Today Show, appearing more than 100 times, as well as a regular on ABC, CBS, Fox, CNBC, CNN, Yahoo, The View, and PBS. He has also been profiled in many major publications, including the New York Times, BusinessWeek, USA Today, People, Reader’s Digest, Time, Financial Times, Washington Post, the Wall Street Journal, Working Woman, Glamour, Family Circle, Redbook, Huffington Post, Business Insider, Investors’ Business Daily, and Forbes.

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Buying a Home Is Cheaper Than Renting in the Majority of the US

The results of the 2018 Rental Affordability Report from ATTOM show that buying a median-priced home is more affordable than renting a three-bedroom property in 54% of U.S. counties analyzed for the report.

The updated numbers show that renting a three-bedroom property in the United States requires an average of 38.8% of income.

The least affordable market for renting was Marin County, CA, just over the Golden Gate Bridge from San Francisco, where renters spend a staggering 79.5% of average wages on rent, while the most affordable market was Madison County, AL where 22.3% of average wages went to rent.

Other interesting findings in the report include:

  • Average rent rose faster than income in 60% of counties
  • Average rent rose faster than median home prices in 41% of counties
  • While median home prices rose faster than average rents in 58% of counties

Bottom Line

Buying a home makes sense socially and financially. If you are one of the many renters out there who would like to evaluate your ability to buy this year, let’s get together to find your dream home.

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5 Reasons Millennials Choose to Buy

5 Reasons Millennials Choose to Buy [INFOGRAPHIC] | MyKCM

Some Highlights:

  • “The majority of millennials said they consider owning a home more sensible than renting for both financial and lifestyle reasons — including control of living space, flexibility in future decisions, privacy and security, and living in a nice home.”
  • The top reason millennials choose to buy is to have control over their living space, at 93%.
  • Many millennials who rent a home or apartment prior to buying their own homes dream of the day when they will be able to paint the walls whatever color they’d like, or renovate an outdated part of their living space.
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7 Common Seller Mistakes

It may seem like a sellers’ market thanks to continuous news coverage about the rising costs of buying, but it’s still a complex endeavor if you want to do it right. Even if you’ve made costly improvements like granite countertops, new appliances, or a new roof, it may not be enough to put you in the best position.

Seven common issues seller’s experience without an experienced, trustworthy professional include:

  1. Overpricing your home

Realtors have their eye on the market and they are aware of the prices, the time frame, and the conditions of other homes for sale. Starting out with your home priced too high discourages buyers from giving your home consideration, and your property could be listed for longer than necessary. An experienced Realtor will suggest an appropriate listing price based on your home’s current value, comparable sales nearby, and other relevant data.

  1. Neglecting repairs

If buyers spot a handful of items that need repair, they’re going to wonder how well the rest of the home has been maintained. Don’t ignore things like a loose hand rail, sagging screen doors or jiggly door knobs, fix them before you have showings. It’s also a good idea to clear your gutters, patch holes in your walls and address dripping faucets. When your Realtor walks through it, they will view it through the buyer’s eyes and let you know what projects will get your home in show-worthy shape.

  1. Spending too much on upgrades

Fixing up your home to sell, or at least making repairs before listing it, is a good start. But, sellers often misunderstand which alterations to make without spending time and money on unnecessary updates. Realtors know what buyers are looking for and what needs to be done in order for your home to make the best presentation.

  1. Marketing

A lot of sellers think they can put a “For Sale by Owner” sign in the yard and a few photos online and have buyers come pouring in. However, getting the best deal means using all of the marketing options available to you. This includes online advertising with professional, quality pictures of your home. Realtors have access to sites that the public doesn’t, and the more people who see your house, the better your chances are of getting the best deal.

“In this age when buyers start their searches online, quality photos are crucial to actually bring them in the door.”

  1. Being emotionally involved

Buying and selling a home is a naturally emotional process. But, the blood, sweat and tears you’ve put into it does not make it someone else’s “perfect,” home.  Unfortunately, a seller’s love for their home can impact their perception of reality. Again, an experienced Realtor can give you an unbiassed view of any objections buyers may have.

  1. Bold Décor

It’s okay to paint your house any color you like while you live there. However, when you’re ready to sell, distinct paint colors or wallpaper just means work for potential buyers. Decorating is a very personal thing and it can cost a lot to paint a house, and the thought of stripping wallpaper can be a deal-breaker.

  1. Not staging your home

Your furniture arrangement may work effortlessly for your family, but it may not appeal to everyone. Often simply moving the furniture can create a better flow, but in some cases professional staging is key to creating the welcoming environment needed to attract buyers. Don’t reject staging or become offended if your agent recommends staging, it is just the act of strategically placing neutral furnishings for the best attention.

The bottom line is – if your goal is to sell your home with the best outcome, you should hire a qualified Realtor and then listen to their instructions.

Realtors have years of experience and unlimited resources to help you evaluate your best options based on your situation and the local market conditions.  For a no-obligation consultation, call today: 719-955.8578 or email us at:

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How Your Home’s Value Grows Your Family’s Wealth

Over the next five years, home prices are expected to appreciate 3.64% per year on average and to grow by 18.4% cumulatively, according to Pulsenomics’ most recent Home Price Expectation Survey.

So, what does this mean for homeowners and their equity position?

As an example, let’s assume a young couple purchased and closed on a $250,000 home in January. If we look at only the projected increase in the price of that home, how much equity will they earn over the next 5 years?

How Your Home’s Value Grows Your Family’s Wealth | MyKCM

Since the experts predict that home prices will increase by 5.0% this year alone, the young homeowners will have gained $12,500 in equity in just one year.

Over a five-year period, their equity will increase by nearly $49,000! This figure does not even take into account their monthly principal mortgage payments. In many cases, home equity is one of the largest portions of a family’s overall net worth.

Bottom Line

Not only is homeownership something to be proud of, but it also offers you and your family the ability to build equity you can borrow against in the future. If you are ready and willing to buy, find out if you are able to today!