Millionaire to Millennials: Don’t Rent a Home… Buy!

Millionaire to Millennials: Don’t Rent a Home… Buy! | Simplifying The Market

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 in order to buy 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.

By | 2018-02-06T05:00:15+00:00 February 6th, 2018|First Time Home Buyers, For Buyers, Millennials, Move-Up Buyers|Comments Off on Millionaire to Millennials: Don’t Rent a Home… Buy!

About the Author:

I am proud to have 25 years of experience as a Small Business Owner, Corporate Executive and Real Estate Investor. I am a native Idahoan and started my real estate career in 1991 working in title insurance, market development and lending programs in the Treasure Valley. I founded my own small business and later joined private industry with a focus on commercial facility management and construction. My career grew into leadership roles with responsibility for contract and real estate management, client negotiation, relocation, investment plan administration, project management, risk management and ethics. Most recently, I have joined the long-standing family real estate business, partnering with my mom (Shirley Hicks) as a second generation Real Estate Entrepreneur to do what I love. I’m passionate about assisting first time home buyers in their journey to achieve home ownership, partnering with seasoned home owners to facilitate buying and selling residential property and working with investors to augment their portfolios with real estate. Turning a house into a home and a place into a community is a benefit like none other. I Look forward to our paths crossing for all of your future real estate needs.