So, you think you might want to buy your own place? Congratulations! There are few better ways of building wealth! Whether you buy a condominium unit, duplex, townhouse, or detached structure,
How is a House Much Like a Fish Net?
Dated: June 12 2020
How is having a house much the same as having a fishing net? Used correctly, they both help prevent needed resources from getting away. Here’s what I mean.
Whether we rent our house or own it, almost all of us transfer a large percentage of our hard-earned money to a mortgage company or bank or landlord every month.
But those of us who send our money to landlords are like people who want to catch fish but have no net. When renters pay their landlord for the coming month, it’s as though they opened a window and threw that wad of cash into the breeze, watching their money escaping their hands.
By contrast, those who pay a mortgage catch some of their money as it escapes because their own houses act like nets to snare some currency before it disappears and hold it for them.
It can do this because a house with a mortgage offers equity to its owners and that equity acts like a net to keep some of the money from escaping. This happens in two ways.
First, with every mortgage payment the percentage of the house owned by the mortgage grantor shrinks and the percentage of the house owned by the homeowner grows, so every payment to the mortgage company also pays the homeowner! Second, as time passes the house will, generally, rise in value, acting almost like interest on the money spent buying it. Now, this doesn’t always happen, and it does take time, but it’s another way to keep more of the owner’s money with the owner
And a mortgage payment is often less expensive than renting. That means you could own a place instead of renting one for less money a month. Take a look at some of the possible places here..
Also if you haven't yet done so, go ahead and pick a month for my Celebration Club contest. Someone in that month is going to get to spend $50 on me at an Arlington County or Alexandria City bar or restaurant, so why shouldn't be you? Just email me at firstname.lastname@example.org or text or call me at 703-403-7802 with your name and a month you choose as your Celebration Month.
Until next time,
I am a Virginia licensed Realtor who takes my role and obligations to clients seriously. Whether you need to sell or lease, buy or rent, please contact me to discuss your situation and let me help you....