Is it better to buy a home or an investment property first? Many people are unsure when it comes to renting, buying a home, and investing in property for money… In this video I share my thoughts on a common question that people have when they approach that stage where they have enough cash to put towards a property.
Asking if a home or an investment property is better is the wrong question, because it does not account for your individual situation and your financial goals. Some people really want their own home, while others (like me) couldn’t really care that much and would prefer to invest in property to get a better return on their money.
The one major difference between buying a home and buying an investment property is that a home is a liability (because it takes money out of your pocket) while an investment property is an asset (it puts money into your pocket). Of course this is assuming your investment property is decent and actually gives you a return on your money.
Whatever the choice you make, it is important that you commit to it and back your choice. You can only be wrong in this situation if you want a home and buy an investment property, and vice versa.
Interestingly enough, many people who are wealthy property investors still continue to rent. Why is this?
Because they want to use all their capital to invest in more assets that will give them money, as opposed to a home that will not give them a return on their money.
They ‘rent where they live and rent out what they own.’
When you purchase a home you are putting a big chunk of money into something that is not giving you any money in return, which for many people, becomes a financial trap.
On the other hand, if you invest in properties that cash flow, you are earning enough money with rent that covers all your expenses.
At this stage in my life I plan on renting where I live while buying investment properties to rent out to tenants.
Let me know what your preference is!
Thanks for watching!
MY FAVOURITE INVESTING BOOKS:
A Random Walk Down Wall Street by Burton Malkiel:
Rich Dad's Guide to Investing:
Rich Dad's Retire Young and Retire Rich:
Rich Dad Poor Dad:
Rich Dad's Cashflow Quadrant:
The Richest Man in Babylon:
MY FAVOURITE SELF DEVELOPMENT BOOKS:
The Power of Now by Eckhart Tolle:
The 7 Habits of Highly Effective People:
12 Rules for Life by Jordan Peterson:
How to Win Friends and Influence People by Dale Carnegie:
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