Thursday, March 15, 2012

Housing

There are many housing options to explore.  Apartments, condominiums, home ownership.  Where we choose to live is no doubt important.  Our residence often comes with how we are portrayed to our friends and family.  People quickly make assumptions about our education and income level due to where we live.  Our home is useful because it gives us a place to store our stuff, to shower, to eat meals, and to rest.    Yet our housing needs end up costing us a great deal.  Often times our total housing costs are 25% to 40% of our take home pay.  In order to build wealth, it is important to get this area of your budget under control.  If you are renting, the aim should be to get the monthly amount down to the least amount.  This can be done by moving to someplace cheaper, having roommates, or working in exchange for housing.  If you are buying a house or a condominium, I recommend the 100% down payment.  This can be done!  There are houses available today for $35,000 that have access to many services and businesses.  If two people are working, they can save that sort of money if that is what they want to do.  If you have to take a mortgage, I recommend a 15 year loan with a fix rate.  I do not recommend the 30 year because the objective is to be an owner, not a life long slave.  Thirty years is a long time and it creates the mind set that you will always have someone to pay.  Once you have your housing under control, it is time to build wealth.  Save, save, save.  But make no mistake about it, getting your housing under control and in line, is very important for you to in order to build wealth.

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