what's up Bulldogs Johnson is here from
bulldog mindset calm we're gonna be
talking about finances here and
answering the question of shall I sell
my house and rent I got from elder
that's his name
so elder says we are thinking of moving
to another city our house has is fully
paid off so we are thinking to sell it
put the money in some bank investment
rent a place for something like one or
two years so we can bulk up more money
and then buy a new house with the lowest
possible debts the numbers are our
houses let's say $380,000 we can get a
1% of rate monthly I think he's singing
it 1% interest monthly we can find a
good place to rent for about $2,000 a
month so we can save a rent or save
about 1,800 dollars monthly plus some
more from our jobs additional info my
name is elder I'm 37 years old I have a
wife and daughter I've been software
developer for 18 years first of all
thank you again for your awesome job and
a lot of us a lot for to help us
developers I did your blogging course
and listened to your podcast daily while
going and coming back for my job believe
me you helped me to change my life do
you think that we're going to make
question that is a good idea if you have
your house paid off and you're thinking
about selling it and renting it's what
you want to do okay especially a house
is not an investment the house that you
live in now yes you can buy a house ok
and make money on it right I mean the
property I'm living in now I bought for
like what seven hundred eighty thousand
dollars a couple years ago and it's
worth over a million dollars now so a
luck I got lucky
it went up it's good but it could have
gone down the way I look at it is if you
live in a house okay
you are essentially paying rent to
yourself
you're the best tenant you'll ever have
because you always pay the rent on time
so you can look at it from that
perspective if you buy a big house if
you spend a lot of money buying a house
it might not be a good investment even
if you're paying the rent on it because
whatever you could have rented it out to
someone
right that's that's what you're
essentially paying even though you're
not pinging right you're just paying the
mortgage it's not true what you're doing
is you're essentially paying the value
of it right and so you have to really
think about this in terms of of property
when you're buying a property the thing
is you buy a bigger house than you need
you're gonna be essentially paying more
rent and the other thing is what how is
the profile of the investment itself a
lot of people say your house is not your
investment which I started to say at
first but it's it depends so if you buy
a property that you could rent out for
more than the mortgage then it's
probably a pretty good investment and
you could live in that property and it
could be your primary residence and you
could essentially rent it to yourself
and it'd be good deal but if you buy
something that you couldn't rent it for
the value and your it would essentially
cost a lot of rent and you don't really
need that it's not a great investment
because it's not really an investment
you see what I'm saying when you talk
about selling your house okay and
renting for a while so you can save up
money so you can have more money to buy
a bigger house with the least amount of
debt possible I don't like that at all I
don't like it for a couple of reasons
one I don't like the idea of having the
money just sit and not gaining interest
it'd be better to have that in a
property in an investment and to do
something with that money right it's
just not a good idea and it's also very
tempting when you have that money to use
that money the other thing going on here
I would say that concerns me more than
anything else is the fact that you want
to save up you want to take all this
money from this one house you want to
save up some more money add it to the
pile and buy an even bigger house okay a
more expensive house this is not this is
not ring of being a good investment I
know it's it's nice to upgrade your
house and to upgrade your living but
honestly and you know and this is my
philosophy in life but it's it's one
that I think you Bulldogs should should
be adapting or adopting which is this
idea that like until you're financially
free you don't get to have nice
okay you don't you don't get to have the
nice car you don't get to have the nice
house right because you're a slave right
now you have to
get up in the morning listen to what
someone else tells you to do okay and go
do it in order to pay for your
right you you can't just live freely
okay like a human being you're not free
human being I'm a free human being
I don't do okay I can buy whatever
the I want with the money that half
and I don't say this to brag I'm saying
it because I don't got to no boss
no one to tell me what to do I'm not
gonna wake up I don't got to do anything
I don't want to do for the rest of my
life because I'm financially
free so I can spend my money however the
I want I can buy whatever I want it
doesn't matter now this doesn't mean
it's wise doesn't mean that you know but
at the same time he sued I'm saying is
like if you're not in that position then
you should be as frugal as possible and
being conservative especially with big
purchases you should not have a new car
they have payments on okay you should
have a house that as small as small as
you can have right whether you buy or
rent I've done some videos you can check
out my whole playlist on real estate
investing we're not I've talked about
this before I'm not gonna rehash that
but what does matter is that what what's
your consumption okay and this is where
I'm concerned is I'm concerned that
you're taking all this money you've made
a lot of money you got that this house
paid off that's great so don't consume
more invest so I would do this this is
what I would do okay
you paid off this house sell your house
great it's fine you want to rent and you
want to save 18 100 bucks a month by by
renting or and you know you want to save
some extra money because you can rent
cheaper great that's fine okay now take
that money that you got from this house
that you sold okay that you paid off
don't get in a bank with one percent
interest go and invest in more real
estate him get some good deals right
with $380,000 you can probably pick up a
few properties okay that will cash flow
that will put money in your pocket in
fact what you'll probably be able to do
right is you know that $2,000 a month
that you're gonna pay rent well if you
take the $380,000 that you get from your
property and you buy smart and you buy a
couple of real estate deals good deals
okay you may be able to generate enough
cash flow from those deals to pay almost
that two thousand dollars a month rent
so you can live rent-free and and have
have this money coming in and have all
these assets that are that are building
you value this is
to get you closer to financially free
yes your your wife is maybe not gonna be
happy about this she wanted to buy that
big new house that's great but it's it's
the price is your life okay because
you're gonna be a slave for the rest of
your life if you pursue that as opposed
to becoming financially free right this
is the thing I would rather have a lot
less money and being financially free
and be my own man be able to do what I
want to do and then work for someone
else it doesn't mean that you act that
you can't keep a job and you'll have to
work for you know you could do that it's
career it's fine you can do that stuff
I'm okay with you guys doing that you
don't have to not everyone has to be an
entrepreneur and and whatnot but if you
want to be a financially free this is
the path right and making an investment
where it's not really an investment
where you're buying up the bigger house
that you know even though you could
quote afford it I so you can't afford it
I say that you can't afford that
you can't pay for for cash and even then
you can't afford it unless you know my
definition of being able to afford
something right is that you can write
the check cash and you don't have to
worry about it either you don't even
like if you have to think about should I
do this and it and it makes you have any
kind of heartburn you can't afford it I
hope that helps you hope that makes
sense my advice is don't don't do this
if you're gonna buy another house you
just stay in this house is one option
and it's paid off that's great okay you
could even take a loan out again and
then invest in a property or you could
just stay there and live rent-free and
you know payment free and save up your
money and start investing okay but don't
buy a bigger better house with all this
money and go in debt more and think
that's an investment that's not a good
plan and in my opinion all right that's
all I got for you today if you haven't
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