How To Get Rich By Buying A Home

There are so many people out there are searching for anopulentfastknowledge

. What I am advising is more of a get rich slowly idea. If however, you happen to know of a sound get rich quick plan, forgo reading this and contact me. On a more serious note I am going to show you how if properly leveraged that simply buying a home young can leave you rich by the time you give up work.

So knowing these numbers there are a few minor things we can deviate on so that not only will your home be paid off at retirement, but it may even pay you to live in it. I do warn you though, that my suggestions are not for the faint or average person, but then again your average person is not well off. I'm going to assume that you are not a highly paid professional, but if you are these ideas still apply. With that said, let's start building wealth. When looking for your first home, I suggest one of two things; either buy a house below your means so you can pay extra on the note each month, or buy a duplex that allows you to do so with rental income. If you are able to; pay twice the note due, or at minimum pay twice the amount of principal due. What this will do is create a dramatically quicker payoff than paying just the minimum especially if you are doing this early during the term of your loan, since interest is calculated based on the remaining principal.

So at retirement this leaves us with an interesting situation, time to sell home #1 and home #3 and buy our final home #4 with cash from the proceeds of the sales. Prior to selling understand you will pay capital gains tax on home #1, but not #3 since it was your primary residence. Then you are left with a paid off home and a rental which will continue to generate additional income for you throughout retirement. In fact, at this point I suggest you turn it over to a property management company if you haven't already and enjoy the extra income with no headaches.

Let's consider the alternative for a moment. If you decide a more traditional approach is what you want I can't blame you as it will afford you a bigger home and likely fewer headaches, but let's see what retirement would look like. Home #1 would be purchased at age 35 and within ten years you would sell it, netting little cash since only a small part of the equity is paid off at the beginning of a loan and several costs are involved with a home sell. So again this process is repeated twice over and if you decided to buy a more expensive home you could be left with a home that is only 50% paid off.

While this article describes an idea for growing your net worth, it may not be for everyone. If however, you would like living your retirement with an additional source of revenue and smaller home payments I would weigh your options and see how you could modify this plan to meet your needs.

by: kamal bhatt

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