Past Due: Radio 150 – Rent vs. Buy vs. Buy A Duplex?
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Today we talked through a very interesting real estate proposition, courtesy of Rodney. Rodney and his wife are a few months away from becoming completely debt free; they’ve been renting and are trying to determine the best strategy for preparing to buy a house.
Right now, Rodney and his wife only spend 9% of their take-home pay on rent, but they’re considering buying a house – even a duplex – by saving either 100% of the purchase price or 20% as a down payment. What are the pros and cons of buying a duplex? What are the pros and cons of saving up to pay cash for a house?
Surprisingly, our conversation doesn’t begin with math, but with: What’s the point in buying a house anyway? Once we’ve answered that question, we can dig into the numbers. I provided some projections of how much Rodney and his wife could save if they stayed put, as well as if they purchased a duplex and had some neighbors right on the other side of a common wall, then provided my opinion, which doesn’t involve living next door to my renters.
If you have a specific question, I’d be happy to answer it and further cultivate the wisdom the of Past Due Radio masses. The experiences of our listener base provide plenty of insight we all can learn from; don’t hesitate to ask – I’m happy to help!