Think your home is an investment? For most people, it’s not. Learn how to rethink real estate so you can build your wealth and become financially independent! Is Your House an Investment or Money Pit? Buying a house is usually the biggest purchase we make. Right now in the United States, the median price of homes that […]
Think your home is an investment? For most people, it’s not.
Learn how to rethink real estate so you can build your wealth and become financially independent!
Is Your House an Investment or Money Pit?
Buying a house is usually the biggest purchase we make.
Right now in the United States, the median price of homes that sold is $225,900.
For those living in high cost of living areas like California and DC, you’re looking at closer to 350k to $400k respectively.
Just considering the numbers, you can see that you really need to do your homework when it comes to buying your house.
A misstep or mistake can cost you a significant amount of money.
I don’t want that to happen to you. When \ever you buy your home I want it to feel like a blessing and a burden.
We’ve had several episodes about the house hunting, getting a mortgage, and finding the best home for you.
Today, though, I want to get into the root of every bad decision we made when it comes to real estate – how we approach it.
I can’t even count how many people had such strong opinions when we were house hunting.
And not all of them were right.
There so many justifications for buying any house.
- ‘You’re throwing away money when you rent’
- ‘Take advantage of the tax savings’
- And my favorite – ‘real estate is an investment’
People were saying this and they no idea what kind of house or neighborhood we were looking at.
That’s not to say buying a house is a mistake.
It can actually be a smart move when done right. And if you’re looking at investing and are willing to put in the work, real estate can be an income stream.
But how you approach it makes all the difference.
Which is why I asked Julien and Kiersten , the creators and the couple behind Rich and Regular to come on today.
They are not only are homeowners, but they are also real investors who are working towards financial independence.
Their properties are a part of their plan so I thought they would be perfect to talk about how to approach real estate wisely.
In this episode we’ll discuss:
- Why they don’t consider their home an investment
- How they got into investing in real estate
- Their strategy around real estate to reach financial independence
Hope you enjoy!
Resources for Buying a House and Investing in Real Estate
If you two are ready to get the
- Best Budget and Money Apps: Personal Capital, Tiller, Mint
- Automatic Saving:
- Free 401(k) Analysis:
- Jumpstart Your Marriage and Your Money
- How to Invest in Real Estate: The Ultimate Beginner’s Guide to Getting Started
- Why our new home is NOT a real estate investment
- The “other” skills you need to be a real estate investor
- 5 Key Ways to Pay Your Mortgage Off Faster
- 5 Reasons to Choose a 15-Year Mortgage
- Which is Better for You – a 15 Year or 30 Year Mortgage?
- What You Need to Know About Mortgages
Support the Podcast
Thank you so much for listening!
- Spread the word! If you enjoyed this episode and think it can help a buddy get on the path to dumping debt and become financially free, please share.
- Leave a review. Honest feedback and reviews make a big difference and gets the word out about the podcast. I’d love for more couples to work together to dump their debt and pursue their dreams together! Please leave your review on Apple or Stitcher.
- Grab a copy of Jumpstart Your Marriage and Your Money. My book is designed for a busy couple to set up their finances in 4 weeks. Get tips and tools that have worked for other couples on their journey of building their marriage and wealth together!
I appreciate your help. Let’s make talking about marriage and money fun!
Stressed and overwhelmed by debt? Learn how you can rebuild your finances and life. Miss Mazuma shares how she overcame $500k of debt, short sales, and found happiness!
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Rebuild Your Finances
It’s the beginning of a new year and while so many right now are all jazzed up about knocking down their debts, saving more, or spending less, that enthusiasm will die down.
And if you still have a huge amount of debt or just a big goal you want to tackle when that happens, you can discourage. And in some cases, understandably depressed.
But what do you then?
How can you stay focused and climb out?
Today’s guest, Miss Mazuma, is kind and brave enough to share her story. In this episode we get into:
- how she got into so much debt,
- have a look into the painful and frustrating process of a short sale
- see how she work through this and came to a healthier spot
Her story is both encouraging and real.
If you want to hear from someone else who has dug out from a mountain of debt, please check out my interview with Toni Husbands. She shares how she and her husband got on the same page and paid off over $100,000of debt.
Resources for Paying Off Debt
Want to learn more? Here are some resources to check out:
- The Rise and Fall of My Empire…and How I Struck Back (Pt 1)
- The Fall of My Shortly Lived Empire (Pt 2)
- Recovering From the Fall of My Empire (Pt 3)
- Paying Off Debt as a Couple
- Attacking Debt: Which One First?
- Which Debt Payoff Method Is Right for You?
- The Great Debt Dump: Running Toward Financial Freedom with the Power of Community
New Year, New You Financial Summit
We’ve been talking about goals and how you two can reach them.
I’ve teamed up with some of my buddies on something that can help you two have an EPIC year. We’re hosting the New Year, New You Summit. It’s a huge week-long event that you can catch from home. It’s going to be happening January 9-13, 2017.
How would you like to hear from others who have done big things like pay off six figures of debt, retired early, or became a one income family to have more time for the kids?
And the best part? You can watch the summit that week for FREE! You just have to register and we’ll save you a spot. Register for FREE here!
Don’t forget to invite friends and loved ones who you feel could also use this! There will also be over free resources and prizes. I want you to have the best year ever, so please sign up today!
Thank You to Our Partners
Support for this podcast comes from partners like Personal Capital. Easy to set up & easy to use. You can have all your investments, income, and expenses all pulled into one place.
Did I mention it’s free? Why don’t you give Personal Capital a try today?
Support for this podcast also comes from Divvy Investments. If you’re looking for an easy way to help keep your portfolio on target for retirement without having to link your accounts to yet another service, check out Divvy.
Listeners can get a 10% discount; use the coupon code, “Couplemoney”.
Buying a house soon? Jon White, financial coach and author of A Tale of Two Houses, shares tips on how you can find the right house for you and your budget!
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What You Need to Know About Buying a House
Buying a house is usually one of the biggest purchases couples make. Add the financial paperwork of getting a mortgage and it can get complicated quickly.
So it’s really important to make sure you’re ready for this leap before you sign the papers.
When we were hunting for our house we did some legwork, but it was worth it. We bought a house a couple of months ago and we’re really happy with it.
Are you thinking about buying house soon? Then please save episode!
How to Buy a House
Jon White is on the show to share his stories about buying two homes.
In this episode we’ll get into:
- the real estate and financial myths that influenced him to by his place
- his biggest mistake when he bought his first house
- how they found a house that is a blessing and not a burden
I hope this episode helps you by a house
Jon White’s Tale of Two Houses
He’s documented the process for both in his new book, A Tale of Two Houses. Jon goes into detail about the mistakes he made when he purchased his condo in 2006 and what he and his wfe did right with their current home.
Podcast listeners who pick up his book can get some bonus material including ways you can start and build up your down payment and audio recording of him and his wife about their journey. You can get it all here.
Resources to Help You Buy a House
If you’re looking for tips and stories from others who have bought a house, here are some podcast shows and articles to check out:
We talked a lot of about mortgages and how to prepare to take one on, but there was one big question I didn’t get into earlier this week – deciding on taking on a 15 year or a 30 year mortgage.
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Paying Less By Paying Faster
The big advantage with 15 year mortgages is that they usually have a lower interest rate, meaning over the life of the loan, you’ll be saving money. How much?
To give you an idea, I went to Bankrate and ran the numbers on one of their mortgage calculators.
For a $200k house with 20% down, a 30 year loan at 4.08% you’ll pay $147,235.00; with a 15 year loan at 3.40%, you’ll pay $55,505.00.
Paying Your Mortgage: 15 Years Vs 30 Years
With a difference that huge, you may feel that 15 year mortgages are always better. They certainly can be – depending on your situation.
If you’re trying to decide, here are a couple of questions you might want to discuss as a couple:
- What can you afford?
- What is the state of your emergency fund?
- What other financial goals or obligations do you have?
Don’t forget; just because you have a 30 year mortgage doesn’t mean you can’t pay it off sooner. You can treat your mortgage as if you have a 15 year loan.
You’ll pay slightly more in interest than with the 15-year interest rate, but still significantly less than with the 30-year loan. Then if an emergency comes up and they do, you have room to pause on the extra payments.
Of course – this requires a disciplined approach, so automating those extra payments may be essential for you to stick with it.
Thoughts on Choosing the Right Mortgage
I’d love to hear from you guys about how you’re handling your mortgage and why? If you are going the 30 year route, do you have any plans to pay it off sooner?