Why Your Home Is A Bad Investment

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Thinking about buying a house? Thinking that it will be a great investment? Think again! Let me show you why owning a home is not the investment opportunity you might think it is...

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Why Your Home Is A Bad Investment

  1. 1. Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com2 WHY YOUR HOME IS A BAD INVESTMENT A Visual Guide On Home Ownership & Personal Cashflow Joel Wenger Invest Safely, LLC The information contained in this guide is for informational and educational purposes only.
  2. 2. Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com3 IS THIS A GOOD INVESTMENT? Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com3
  3. 3. Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com4 INCOME EXPENSES ASSETS LIABILITIES PERSONAL BALANCE SHEET PERSONAL INCOME STATEMENT USE A “CASHFLOW” PERSPECTIVE Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com4
  4. 4. Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com5 ASSETS (+) YOUR HOUSE IS AN ASSET… The average home is worth an estimated $221,000 Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com5
  5. 5. Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com6 LIABILITIES (-) …THAT COMES WITH A LIABILITY… The average mortgage is worth an estimated $222,260 Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com6
  6. 6. Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com7 ASSETS (+) LIABILITIES (-) …WHICH IMPACTS BOTH SIDES OF YOUR PERSONAL BALANCE SHEET… ASSET – LIABILITY = NET WORTH $221,000 - $222,260 = ($1,261) Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com7
  7. 7. Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com8 …AND YOUR PERSONAL INCOME STATEMENT The average monthly mortgage payment is: $996 INCOME EXPENSES ASSETS LIABILITIES Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com8
  8. 8. Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com9 BUT WAIT…THERE’S MORE InsuranceWaterHeat ElectricityMaintenance Phone/InternetCable/Satellite Property Taxes Assoc. Fees Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com9
  9. 9. Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com10 $715 PER MONTH MORE! $64$51$75 $121$63 $71$86 $151 + $33 Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com10
  10. 10. Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com11 CASHFLOWS CREATED BY YOUR HOME INCOME $0 EXPENSES $1,711 ASSETS (+) $221,000 LIABILITIES (-) $222,260 Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com11
  11. 11. Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com12Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com12
  12. 12. Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com13 THE ONLY "GOOD" INVESTMENTS ARE THE ONES THAT MAKE YOU MONEY INCOME (MONEY) EXPENSES ASSETS (INVESTMENTS) LIABILITIES Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com13
  13. 13. /InvestSafely@InvestSafely www.invest-safely.com/safe-investing.xml /InvestSafely FOR MORE INFO… Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com14
  14. 14. "As to methods there may be a million and then some, but principles are few. The man who grasps principles can successfully select his own methods. The man who tries methods, ignoring principles, is sure to have trouble." - Ralph Waldo Emerson INVEST SAFELY, LLC http://www.invest-safely.com

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