David Bach has set himself distinctly apart from those who tell you that buying a home is one of the most problematic, ultimately pointless decisions an individual can make. While many have described the process of buying, owning, and even selling a home as an absolute nightmare, the self-made millionaire Bach is taking a different approach.
More than ever before, the self-made American millionaire wants people, particularly Millennials, to reconsider their stance on the concept of owning a house.
Should Millennials Buy Homes?
With the housing market for the United States continuing to exist on what seems like a profoundly slippery slope, more individuals than ever before are rallying against the potential, arguably significant, factors to owning a home. David Bach on the other hand believes the opposite. It is his opinion that Millennials are making a serious mistake in failing to prioritize owning a home.
Describing the act as an “escalator to wealth”, Bach makes several compelling arguments. In the first place, he argues that without the financial security foundation of owning a home, the potential for achieving meaningful wealth is almost non-existent. Bach makes it clear that average homeowners tend to have thirty-eight times the wealth of someone who is renting.
The self-made millionaire elaborated, claiming that his most recent successful investments involved homes. Bach would attribute his recent successes to simply living. He bought and sold a home in New York during an opportune moment in time. He then went on to do the same for a home in San Francisco. The end result, he has claimed in interviews, has been the chance to increase his wealth by millions and millions.
Bach continues to believe that since an individual needs to find a place to live for the rest of their life, they may as well consider the potential investment value of a home. Bach encourages individuals who are on the fence about the subject to consider the long-term. A renter can sink tens of thousands of dollars, even millions, into renting a series of homes or apartments, over the course of their lives.
Remember a Golden Rule: At the end of the day, your home payment should not consume more than thirty percent of the money you take home each month. Bach also adds that if an individual is buying a home for the first time, they may want to settle in certain regards. He argues that most people are not going to get the dream homes they have always wanted. At least in the beginning, it might not be worth the time and energy to try. Bach also advises those who are interested to really do their research on the subject. This would certainly include crunching the numbers and exploring all options.