Opportunity Zones are census tracts that are defined by the Internal Revenue Service (IRS) as “economically-distressed community where new investments, under certain conditions, may be eligible for preferential tax treatment.” They were added to the tax code by the Tax Cuts and Jobs Act on December 22, 2017. (opzones.ca.gov)
Millennials Paid Record High Rents in 2018. Buy Instead! Says This Millionaire!
According to Housingwire.com in 2018 Mellinals were paying all time high rental rates. Here’s what David Bach has to say to them.
If you’re not prioritizing home ownership, you’re making a costly mistake, says co-founder of AE Wealth Management, bestselling author and self-made millionaire David Bach.
In fact, not buying a home is the single biggest mistake millennials are making, he tells CNBC Make It: “The most important advice I can tell you right now if you’re young is: Don’t listen to these people that tell you should rent versus buy.”
Even with the tax law changes, he notes, “buying a home is the escalator to wealth in America. Homeowners are worth forty times more than renters.”
You have to live somewhere for the rest of your life, Bach points out, so you might as well invest in a home that you could own permanently.
He crunches the numbers in his bestselling book, “The Automatic Millionaire”: “As a renter, you can easily spend half a million dollars or more on rent over the years ($1,500 a month for 30 years comes to $540,000), and in the end wind up just where you started — owning nothing.
“Or you can buy a house and spend the same amount paying down a mortgage, and in the end wind up owning your own home free and clear!”
“Let’s be honest: Renters make landlords rich,” Bach tells CNBC Make It. “I want you to make yourself rich, so start by saving money for a down payment now.”
He recommends having a down payment of at least 10 percent, though 20 percent is ideal. The easiest way to reach that amount is to have money automatically taken out of your paycheck or checking account on a regular basis and moved directly into a savings account earmarked specifically for your first home.
Buying that first home probably means you’re not buying your dream home, Bach says, but the way you reach that goal eventually is by prioritizing homeownership now.
“The way you build financial security is through real estate, and it starts by buying your first home,” he tells CNBC Make It.
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Housing Forecast for 2019
What’s in store for Housing Prices, Flipping, Mortgage Rates? Diane Olick discusses the possible reason for decreasing home values, Ryan O’Hara (CEO Realtor.com) talks about hos flipping homes is turning into a difficult way to make money.
Moving to Mar Vista, CA (Palms)
Mar Vista, a family friendly neighborhood good schools and a lots to do for kids and families. Located just east of the “pricey” Venice Neighborhood, Mar Vista offers all the convenience and access to beach communities, with a much more affordable price point.. Mar Vista has a great “small town” feel with lots of “mom & pop” cafes, boutiques, and services. This is a great place for young families working on west side or Hollywood, with great access to freeways, close to silicon beach tech companies, and quick access to Hollywood.
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