Your family house is your BIGGEST investment
By silverjack
@silverjack (34)
Malaysia
July 8, 2009 4:44am CST
RK keeps on emphasizing that your family house is NOT your BIGGEST investment, and if it is your BIGGEST investment, you are in trouble.
This reality keeps on repeating itself in my mind. I'm working in a mortgage consultancy company and day in day out I helps people apply for housing loans, and refinancing them. Many has meager salary to afford them to own a family home. Many don't realise that getting a family home could easily eat up 1/3 or more of their available funding for use, but yet, they are willing. They are willing because they thought that it is their BIGGEST investment.
I'm relieving myself from this reality and hope in very near future, I could get some other houses which could be my BIGGER investment. I'm on my way there. Are you?
2 responses
@foreverfaithful (21)
• Philippines
2 Dec 09
hi silverjack,
im actually, i may say sufferring from that dilemma of owning ( rent to own) a family house. It really eats up every money that we have to pay our month amortization, plus all the bills that we need to maintain.
i really want to get out of the rat race ASAP! i want to know more how can i fill my asset column with investment that will put money to my pocket.
I want to be financially FREE! anyone? please..
Coming from the book great investment can mutual funds, bonds, but im trying to learn the basic of it...can we start a discussion about this?
Sometimes, i feel to pressured with all the bills that i have, i forgot to enjoy this short-life that i have.im really trapped!whew!but i believed, there's still enough time to be FREE!
thank you and Godspeed!
@lealuvy2j (1986)
• Philippines
9 Jul 09
RK tells us that a house is an investment for him is if it's a house that puts money back to your pocket. Thus, he tells us that if we do buy a house, we should be renting it out to other people or selling it for a higher price. By doing this, we are investing for Cash Flow which RK is a firm believer of but if we buy a house and live in it and we keep paying for a high mortgage just to keep the house then that is when a house becomes a liability because it is not putting money back to your pocket. I really believe what he is saying because when everyone thought that their house is their biggest investment is what triggered the real estate crisis in America which in turn resulted to recession.
