Is your home bringing you money or taking money out of your pockets?
Is your home paid off, or are you still making payments?
Buying a house is really “renting to buy.”
The average person will not pay off their house for decades.
Until you pay off that mortgage, that home is not yours.
So why do many people believe buying a house is smart?
Because they’re taught to do so when they can “afford” a home on paper (i.e., decent credit, fair debt-to-income ratio, and consistent income).
When you have a stable and consistent income and reach a certain age, the next logical step you’re taught to take is to buy a house.
Renting Is Underrated
If you keep your expenses low, you incur no debt from owning a home and can maintain a high disposable income that can be invested to build a net worth similar to that of a person who “faux owns” their home.
Remember, “your” home is not an asset until you sell it.
And if your home is not paid off, you’re only getting the difference subtracted from the amount necessary to pay off your mortgage if you decide to sell.