Dude, I Bought a House!
I
guess I should probably introduce myself. Hi, I’m Aaron Hodges. I’m a 20 year
old aspiring real estate agent who has his eyes on the future. If the headline
wasn’t a big enough hint, I’ll just tell you that I managed to buy a house. It
isn’t a whopping, 2,500 square foot, dual story monstrosity, but it definitely isn’t
a small, one bedroom apartment either. You might have read my age and thought
“He has to be Joking! He’s only 20!” Well, I’m not joking. I am serious. I
bought a good quality, three bedrooms, two bathrooms home all on my own. Some
of you might be asking how a “young kid” can afford to buy a house. You also
might assume that I am privileged in some aspect. I’ll be honest with you; I am
privileged. I have the privilege of knowledge. The same knowledge that I’m
about to give you. In the business of Real Estate, you constantly hear the term
“It’s not about what you know, it’s about who you know.” The reason we say this
is because everyone knows something that somebody else doesn’t. Now you know
me, and I plan on giving you the very knowledge you need to buy your next home.
Let me start with how I bought my home. I currently work
two jobs. It might surprise you, but I still have plenty of free time for
myself. I am a licensed Realtor, as well. I tend to work real estate when I’m
not working my other jobs. Having three jobs is not what I would consider
“preferable” for anybody. Now, here’s the kicker: I got the loan by only using
the income from my main, full time job. My lender didn’t even factor in my
second, or third, job. That means that I could have easily bought the house
while working one job. So now I can say that I, alone, bought a house using the
income from a $14 an hour, 40 hours a week job. That far off dream of buying a
house just got a whole lot closer, didn’t it?
A lot of you might be thinking, well now he is in debt!!
And at such a young age! He is a fool! Well, am I? Think about it. Either
you’re paying YOUR mortgage, or your landlord’s mortgage. If you think your
landlord owns that property outright, think again. Only about one third of all
homeowners in California have no mortgage. You may not have debt, but you’re
paying off somebody else’s.
On average, renting is more expensive than buying. Why?
Well here are a couple of reasons. 1. The landlord may have a minimum mortgage
to pay. 2. A mortgage payment is normally fixes over the course of a loan, even
for 30 years. 3. A landlord isn’t renting his property out for free. He/she is
charging hundreds of dollars MORE than his mortgage costs every month. 4. When
paying a mortgage, you are paying into your own equity (profit).
“What
is this Equity you speak of Aaron?”
“Well,
Reader, I’m glad you asked!”
Equity
is the profit someone builds in a house. This can be from inflation in the
costs of housing, paying down your mortgage, or fixing up a run-down home and
creating “Instant Equity”. Just remember, equity is profit. Any money you make
when selling or refinancing your house is instant profit. As of late, housing
prices have been rising by significant amounts. You would not only own your
house, but you could be making money off of it as well.
Owning
a home has many benefits. From bragging rights, to accumulating profit. You can
own a home. Start by calling your local realtor and they can help you begin
your journey into the exciting world of homeownership.
Aaron Hodges is a realtor with Timothy Toye & Associates
and can be reached at 707-413-9411.
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