I always associated buying a house with settling down, getting a mortgage—and losing a huge amount of freedom. There was always the draw of buying to start building equity, but at what cost?
The answer: as little cost as possible. The brightest side of the rust belt is that there’s no shortage of buying opportunities, offering the best of both worlds.
After operating our business in a fringe neighborhood for fourteen years without a single crime issue, I’d long since ignored peoples’ unfounded scaredy-pants safety concerns. Looking and saving for many years, I eventually found a little house by a park and snatched it up with a cash short sale. Most foreclosures were train-wrecks, but the inspector gave this
one the thumbs up: a nice little 1000 sq2 three bedroom with full basement, two car garage, and a fenced-in yard.
I’d lived with roommates for a loooonnnggg time, saving for a down payment on a bigger house. All this money set aside for an expensive house proved plenty to make a cash purchase on a cheap one. I gutted it, putting every dollar (and then some) into renovations. Putting the excess renovation costs on a 3% balance transfer deal bought an extra year: far better terms than a mortgage, and the ticking clock compelled me to wipe out this remaining renovation debt asap.
A pair of newlywed neighbors in grad school did the same, having moved from San Diego. Instead of spending over a mil, they bought a nice place at four percent of that cost while avoiding the finance costs, PMI, etc.
The property taxes and insurance are insignificant. To put this in perspective, my wife and I pay more to rent a 100 ft2 storage unit in Chicago.
Some people really want to believe there’s a crime problem, but It’s completely groundless. I’m surrounded by honest hardworking home owners. People are people. Criminals are rare exceptions and don’t live on our street.
I discovered a side home ownership opened doors to freedom and peace of mind. Life is long, and avoiding massive debt simplifies things. Get a starter home. You’re not resigning yourself, rather loading the springboard for life’s next big move.
Next: How we accelerated our retirement… by buying a yacht.
