Advice
US millionaire advises millennials should buy home, not rent
30/11/2018 15:33 | Source: Vnexpress
Self-made millionaire David Bach says not buying a home is the single biggest mistake millennials (who were born between 1980 and 2000) are making.

Bach tells CNBC: "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." The American millionaire believes that homeowners are worth 40 times more than renters.

He points out that without a home, you have to live somewhere for the rest of your life, so you might as well invest in a home that you could own permanently.

US millionaire advises millennials should buy home
Self-made millionaire David Bach

In his bestselling book, "The Automatic Millionaire", Bach analyzes: “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!”

The self-made millionaire recommends having a down payment of at least 10 percent, or 20 percent is an ideal amount for the first home. He notes buying that first home probably means you are not buying your dream home, but the way you reach that goal eventually is by prioritizing homeownership now.

He tells CNBC: “The way you build financial security is through real estate, and it starts by buying your first home.”

David Bach reveals the wisest investment he ever made was buying three houses. He used to buy and resell them at quite high prices. And so on, his net worth increased by millions of dollars, simply because he dare buy homes.