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Are You Taking Advantage Of The Real Estate Market? Stop Renting!!!

One of my biggest goals of this year is to take advantage of the current rock bottom prices of real estate. I was lucky enough to catch a decent deal on my first townhouse a few years before the peak of the real estate bubble and I plan on getting an even better deal on another property this year.

If I sold my townhouse even in today’s market I am looking at walking away with six figures in my pocket. I am talking about a double digit percentage of return on my investment.

I was able to do this by remaining patient when I was younger. Most people get out of high school or college and want to get out on their own right away. I too had this desire but I knew it was not the smart thing to do. The smart thing was to save as much money as I could. While all of my friends and classmates were basically throwing their money out a window by renting I was saving. I have to admit, it was tough especially when I would go to a kick-ass party that my friends were throwing at their sweet apartment. I wanted nothing more than to have a place of my own. But my WillyPower prevailed and I waited until I could BUY my own place. Now many of those friends are still having money issues 10+ years later.

Renting and credit card debt are the two biggest things in my opinion that you can control that lead to financial issues down the road. I know it is much easier said than done but if you are renting then do WHATEVER you can to save as much money as possible and buy a home. Bring your lunch to work every day. Stop playing the lottery. Stop smoking. Stop going out to eat so much. Trust me. It is sooo worth it in the long run. I know some of these things sound small but it all adds up BIG TIME! If you spend $5 a day on lunch at work then that is $25 a week that you are missing. For four weeks that’s $100 a month. That is $1,200 a year that could go towards a down payment on your own home.

Prices and mortgage rates have not been this low in a long time so take advantage. Even if you rent now, talk to your landlord about a rent-to-own option where a portion of your rent would go toward a purchase price of the home. You would be surprised at how many landlords would be willing to do this. Many landlords are hurting as well in this economy and may be very willing to help you take this home off of their hands. Remember: It never hurts to ask.