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Thinking about buying a house? Thinking that it will be a great investment? Think again! Let me show you why owning a home is not the investment opportunity you might think it is...
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Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com 2
WHY YOUR HOME IS A BAD INVESTMENT
A Visual Guide On Home Ownership & Personal Cashflow
Joel Wenger Invest Safely, LLC
The information contained in this guide is for informational
and educational purposes only.
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IS THIS A GOOD INVESTMENT?
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INCOME
EXPENSES
ASSETS LIABILITIES
PERSONAL BALANCE SHEET
PERSONAL
INCOME
STATEMENT
USE A “CASHFLOW” PERSPECTIVE
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ASSETS (+)
YOUR HOUSE IS AN ASSET…
The average home is worth an estimated $221,000
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LIABILITIES (-)
…THAT COMES WITH A LIABILITY…
The average mortgage is worth an estimated $222,260
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ASSETS (+)
LIABILITIES (-)
…WHICH IMPACTS BOTH SIDES OF YOUR PERSONAL BALANCE SHEET…
ASSET – LIABILITY = NET WORTH
$221,000 - $222,260 = ($1,261)
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…AND YOUR PERSONAL INCOME STATEMENT
The average monthly mortgage payment is:
$996
INCOME
EXPENSES
ASSETS LIABILITIES
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BUT WAIT…THERE’S MORE
Insurance Water Heat
Electricity Maintenance Phone/Internet Cable/Satellite
Property Taxes Assoc. Fees
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$715 PER MONTH MORE !
$64 $51 $75
$121 $63 $71 $86
$151 + $33
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CASHFLOWS CREATED BY YOUR HOME
INCOME
$0
EXPENSES
$1,711
ASSETS (+)
$221,000 LIABILITIES (-)
$222,260
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Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com 12 Copyright © Invest Safely, LLC. All Rights Reserved www.invest-safely.com 12
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THE ONLY "GOOD" INVESTMENTS ARE THE ONES THAT MAKE YOU
MONEY
INCOME (MONEY)
EXPENSES
ASSETS (INVESTMENTS)
LIABILITIES
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/InvestSafely @InvestSafely
www.invest-safely.com/safe-investing.xml
/InvestSafely
FOR MORE INFO…
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"As to methods there may be a million and then some, but
principles are few. The man who grasps principles can
successfully select his own methods. The man who tries
methods, ignoring principles, is sure to have trouble."
- Ralph Waldo Emerson
INVEST SAFELY, LLC
http://www.invest-safely.com