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Millionaire To Millennials: Don’t Get Stuck Renting A Home… Buy One!

Millionaire To Millennials: Don’t Get Stuck Renting A Home… Buy One! | 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 to buying 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.

Las Vegas Home Sales Chart for September 2018

Well, are we seeing the beginning of a market turn in Las Vegas? It is time to think seriously about it. Las Vegas single family home sales in September were down 15.9% from September 2017 and down 21% from August. That is more than a seasonal drop, and sellers have to consider affordability for their prospective buyers.

With the Federal Reserve interest rate rise last week, we can expect mortgage rates to trend up slowly over the coming months to 5% and a little above. And please note the MEDIAN PRICE above for September: yes, it is right at $300,000, the highest median for Las Vegas single family homes since August 2007, up 12.8% from September 2017. So, following the Law of Supply and Demand, fewer homes are selling at a higher median price. To hammer that point a little further, sellers are beginning to get the message. In the past 7 days, price reductions on the Las Vegas Multiple Listing Service for Las Vegas Valley of CURRENT listings almost match NEW listings: 891 decreased prices and 914 new listings.

This reflects trends in California, as homes in southern and northern California have been slower to sell and prices are beginning to come down. Inventory here is up as well. The current number of homes available is the highest since November 2016. Keep in touch with our website www.SummitPropertiesVegas.com to follow the latest Las Vegas Real Estate news!