![]() ![]() It's better financially to invest that money than to buy a house." Examine your motivations for buying a houseįor anyone saving for a home or comparing themselves to their peers who are already homeowners, Morong says, "I would really encourage anyone who's aggressively saving for a home to evaluate what their motivations are." It worked out for me, but I'm renting now intentionally because where I want to live, the prices are insane. She says, "I bought my first house when I was in my early 20s, and it was an investment property. Morong rents an apartment in San Diego, though she owns an investment property as well. They're better off paying $4,000, then investing the difference in the market." Some people might say, 'Oh, you could buy for $4,000!' But they would have to go 20 to 30 minutes outside of their desired neighborhood, and after HOA fees and all of that, they end up paying $7,500 a month. She gives another hypothetical example: "Let's say, for example, someone lives in Boston and is renting an apartment for $4,000 a month. They might have walked away with more than $30,000." In the example she provided of a client only walking away with $30,000 in profits from investing in a home, Morong says, "They could have invested that money they spent over the last 10 years instead. "Every market is a good market to buy for somebody, right?" she says. ![]() Morong says, "Some people thought they were making $300,000, but when we crunched the numbers, based on how much they paid on the ancillary costs related to homeownership, they only walked away with $30,000." Morong says your money might work harder in the stock market instead of real estate
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