The 4 Lies Of Buying A house

When it comes to buying a house, it's easy to get caught up in all the hype. But let's be real: purchasing a home is a major decision that should be carefully thought out, not based on myths and misconceptions.

Unfortunately, these falsehoods have become so ingrained in our culture that most people don't even realize they're buying into them.

As a result, many people end up making the leap into homeownership before they're truly ready or before it's the right move for them.

If you're thinking about buying a house, the first step is to unravel these myths and approach the decision with a clear, objective mindset.

Myth 1: Renting a house means you are only paying your landlord's mortgage

A lot of folks have this idea that being a landlord is a breeze: buy a property for $1,000 a month, jack up the rent by 10%, and boom – you're rolling in cash.

But that's not exactly how it works in the real world.

Landlords can only charge what the market will bear, which means sometimes they make a profit, and sometimes they barely break even. So don't let the myth of the rich landlord lure you into buying a house before you're ready.

There's no shame in renting; sometimes it can be the smarter financial move. Learn to run the numbers first.

Myth 2: If you are paying rent you are throwing money away

When you rent, you are paying for the value you receive. If you don’t receive value, then it does not make sense to rent.

When you fork over your hard-earned cash for rent, you are getting something pretty valuable in return: maybe it's a sweet roof over your head, a killer view, and a cozy place to rest your noggin.

When you pay rent, you're not just throwing money out the window – you're paying for a service, just like when you splurge on a fancy dinner or a great concert.

So don't let anyone tell you that renting is a waste of money. As long as you're getting something out of it that's important to you, that is what matters. Remember, we all need a place to live!

Myth 3: Housing prices will keep going up.

Mark Cuban said it best: Everyone is a genius in a bull market.

When prices are skyrocketing, it's easy to believe that they'll just keep on climbing forever. We saw it happen in '99, in '06 and '07, and most recently during the wild ride that was 2020, '21, and '22.

But the truth is, these kind of price spikes almost always come down eventually. The math just doesn't add up to keep prices rising forever. In the long run, the price will be higher than it is today, but it is not always at a favorable rate of return.

So if you're thinking of buying a house, it's important to have a solid financial plan in place and stay up-to-date on what's happening in the world. And hey, if prices are high right now, don't panic – just wait it out and see what happens. Patience is key when it comes to making big financial decisions.

Myth 4: Buying a house is always a good investment.

Buying a house isn't always a guaranteed way to build wealth.

Sure, your home's value could go up and up, and that would be awesome.

But here's the thing: it can take years and years to really see a significant return on your investment. And when you factor in all those sneaky hidden costs (think: down payment, maintenance, property taxes, and more), you might be better off parking your money in a solid S&P index fund.

So while buying a house can be a smart move, it's important to remember that there are no guarantees – your home's value could go up or down, and you need to be prepared for either scenario. It's all about finding the right balance for you and your financial goals.

Owning a house has an average return of 4%. That is because all the invisible costs associated with ownership. There are a ton of reasons to buy your primary residence, but as an investment should not be one of them. Here are a few:

• You want your kids to grow up in that area, with a great school district and want to build memories.

• The scenery is calming and makes you happy

• Your aging parents are moving in and you need more space

• You want to design a house with your spouse

• You love home repair and making a house your own.

• You just want to and don’t have a good reason. This is the best reason.

If you want a house, get a house! Just make sure you run and understand the numbers.

So, you're thinking about ways to breeze through those airport lines, right? Let's dive straight into the pros and cons of these programs, TSA PreCheck and CLEAR. They've got their own strengths and weaknesses.

First off, let's chat about TSA PreCheck

Now, what's cool about this?

1. You can forget about the hassle of taking off your shoes or pulling out your laptop at security. Convenient, right?

2. It's got your back in over 200 airports and with 73 airlines. That's a pretty big playground!

3. The cherry on top? It's just $85 for five years! Not bad, huh?

But nothing's perfect. Here's the flip side:

1. The application process can be a bit of a drag. You gotta do it online, and then go in-person for some background checks and fingerprinting.

2. And yeah, sometimes, even the PreCheck line can get backed up.

Next up, let's talk about the flashy one, CLEAR.

What's the hype about?

1. It's super quick! Uses your biometrics to skip you right to the front of the line.

2. And, it's techy. Who wouldn't enjoy a bit of a sci-fi experience at the airport?

But here's the catch:

1. It's a bit of a snob, available at only around 50 airports and stadiums.

2. The price tag is a bit hefty too - $179 per year!

3. And if you're thinking about a family account, well, not really an option unless your kids are under 18.

Now, listen up, here's the kicker: You can actually combine TSA PreCheck and CLEAR for the ultimate express airport experience. Imagine being whisked to the front of the line with CLEAR, then breezing through security with TSA PreCheck. It's like the VIP treatment at the airport!

So how do you get both without breaking the bank? Remember our favorite travel card - Amex Platinum card? Well, it can cover your CLEAR membership fee! That's right, a $179 value, just like that.

So, you could get CLEAR through your Amex Platinum, and then just pay out of pocket for TSA PreCheck. It's just $85 for five years. A small price to pay for the kind of luxury and convenience you'll be getting, don't you think?

This way, you get to strut through the airport like a VIP, breeze past the long lines with CLEAR, and then glide through the security with TSA PreCheck without ever having to pull out your ID. You'll probably wonder how you ever traveled without them. Happy Traveling!

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Watch. Is a house an asset or a liability? And how can you turn your house into an asset?