Owning a home is necessary precursor to accumulating “wealth” (as opposed to living paycheck to paycheck with nothing tangible to really show for it). A house is a substantial investment that builds equity over time, it’s a mechanism for significant tax deductions, and it’s a major asset that provides value to your loved ones after death. Conversely, in the words of Kendrick Lamar with the Lonely Island “renting is for suckers in this economy.” It’s a complete money drain, and you have no ownership interest in your unit. We don’t mean to be all doom and gloom, but if you want security in the future, you’re going to have to purchase a home; stop making excuses. We know how convenient excuses are, so we’re going to help you stop making some of the most common excuses for not buying a home.
The number one excuse for renting rather than buying a home? “I can’t even afford the down payment.” Maybe that’s the case, but let’s be honest – you didn’t actually talk to a lender about what you can afford, did you? Think back to your younger years, little league specifically – “it’s ok to strike out, as long as you strike out swinging.” That mantra is a truism for life, maybe you don’t actually have enough for a down payment but go down swinging.
Another common excuse is “I’ve got to save money before I can even consider buying a house.” That is an absurd excuse on its face. How will you ever save money if you’re basically making mortgage payments in rent every month? You waiting for that big lottery win to change your life? No! build equity with the money you spend; property ownership is the best way to build for your future (because you’ll be living in your money).
Another silly excuse is “I can’t leave my apartment because I am on a year lease.” Here’s a very abridged version of the state of the law. Your lease is an agreement to live somewhere for X months while paying a fixed rate of Y; it is a binding contract. If you leave early, you are in breach of that contract (this is where people get stuck). You are on the hook for the landlord’s damages, which are [drumroll] lost rent while the unit is vacant. Here’s the rub, the landlord has what is referred to as “a duty to mitigate damages” (find a new tenant) – this means the landlord can’t just leave the unit vacant and collect rent all year long. Ultimately, you’re not special as a renter – the Landlord will want someone new in as soon as possible (particularly because they’re not locked into the rate you agreed to anymore).
Finally, “I want the perfect home, I won’t buy until I find it” – enjoy wasting your money renting for the rest of your life then, the perfect home doesn’t exist (even if you built your dream home, it would still be imperfect … because you don’t actually know everything you want). If a home is batting .700, you sign that house to your team immediately.
At the Chernov Team we understand that knowledge is power, and knowledge of how to turn sunk money into an investment that yields benefits for decades to come is powerful knowledge indeed. At the Chernov Team we know that whoever comes to the table most prepared leaves with the most, and the Chernov Team always leaves the table with the most.