Buying Your Home, First
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Buying a home is one of the most important decisions you'll ever make, and it can be challenging to decide whether to prioritize homeownership or investing in rental properties. Some people might argue that purchasing a rental property first is the way to go, but there are plenty of reasons to consider buying a home first.
Let's take a look at some famous examples of people who have made smart investments in real estate by prioritizing homeownership.
Warren Buffett is a legendary investor and CEO of Berkshire Hathaway. He famously advised his heirs to invest in a home before buying any rental properties. Buffett himself owns a modest home in Omaha, Nebraska, which he purchased for just $31,500 in 1958 and still lives in to this day. By focusing on building equity in his home first, Buffett was able to establish a solid financial foundation that helped him make savvy investments in other areas.
Barack Obama, the former President of the United States, and his wife Michelle also purchased a home before investing in rental properties. They bought a property in Chicago's Hyde Park neighborhood in 2005 for $1.65 million, which they sold for $1.85 million in 2017, netting a tidy profit. The Obamas' investment in their own home allowed them to build equity and establish a solid financial foundation for the future.
Ellen DeGeneres, a famous comedian and talk show host, is another example of someone who has made smart investments in real estate by prioritizing homeownership. She and her wife Portia de Rossi have owned multiple homes in California over the years, including a stunning Beverly Hills mansion that they purchased for $40 million in 2019. By focusing on building a portfolio of high-end homes, DeGeneres has been able to establish a strong financial position for herself and her family.
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Barbara Corcoran is another successful entrepreneur, real estate investor, and television personality known for her role on the hit show “Shark Tank”. Despite her success in the real estate industry, Corcoran still believes that owning a home should come before investing in rental properties.
In an interview with Forbes, Corcoran stated that “owning your own home gives you security, which is something you can’t get with rental properties. Once you have a solid foundation, then you can start investing in other properties.” Corcoran also believes that owning a home can help build your credit and establish a solid financial history, which can be beneficial when it comes time to invest in rental properties. Corcoran is proof that even successful real estate investors understand the value of owning a home before investing in rental properties.
Robert Kiyosaki, the author of the bestselling book “Rich Dad, Poor Dad”, is a big proponent of investing in rental properties, but he also recommends owning a home first as a way to build equity and establish a solid financial foundation. In fact, Kiyosaki himself purchased a home in Phoenix, Arizona, before investing in rental properties. By taking the time to build equity in a home first, Kiyosaki was able to establish a strong financial position that allowed him to make smart investments in the future.
In conclusion, owning a home before investing in rental properties can be a smart financial decision, even for experienced real estate investors. By focusing on building equity in a home first, you can establish a strong financial foundation that can help you make smart investments in the future. Famous examples such as Warren Buffett, Barack Obama, Ellen DeGeneres, Robert Kiyosaki, Barbara Corcoran and Grant Cardone have all shown that prioritizing homeownership can lead to long-term financial success. If you’re considering whether to buy a home or invest in rental properties, take inspiration from these successful investors and consider prioritizing homeownership. It could be the best investment decision you ever make!