How to Never Truly Pay Rent

If you are like the millions of Americans who are struggling to pay rent or simply struggling to WANT to pay rent, you are certainly not alone. Rent is basically occupying an area that you find shelter in while having to pay for it each day. Each year, this number goes up and eventually you're being asked to put more and more until, well, you're dead.

Instead, think of buying-- irrespective of whatever market condition you are living in, it make sense TO BUY. But, make no mistake, this is not going to be your dream home. The goal is to be able to make buy something that will cost your 20 years to pay for, but to make monthly payments that are LESS than your current rent amount.

Find an area nearest to the city that is busiest to you. Ensure that the area is safe by checking crime rates and the types of crime that have happened within the past 48 months. Then, ensure that the area is populated in a well and upcoming neighborhood with local businesses thriving. Find a small 2-3 bedroom house with less area space so that your taxes are cheap. Calculate your mortgage payment by looking for a house whose monthly payment with taxes + insurance come out to about the same as your rent. Let's say you are currently paying $1400 a month for rent. You can look for a house whose value is 200,000 with property taxes not exceeding 4,500 a year. With a 5% down payment and a payment of $1500, you are investing in an asset whose loan value goes down and its equity builds with each payment you make. Like with anything great, there are caveats.

If you are single or have a girlfriend, keep one room for yourself and rent the other out. As you do so, take that rent money and pay down your principal with that money. In 3-4 years, if and when you are financially sound, you can sell your house and pretty much get 1/2 of what you paid as a mortgage for it. That money can be invested into a new house, or a new long term investment or anything you honestly want.

Compare that with RENT>