Two years ago, we discussed a very old concept in a very new way on my radio show. The overwhelming response? “There’s no way I could live with my family…” But if you could, there would be a HUGE financial benefit. In San Diego’s red-hot real estate market, people are now pooling their funds to buy houses together. The idea is to buy a home big enough where everyone can live comfortably together. Talk about a way around the home-buying frenzy in San Diego’s sub-500k real estate market!
I know it’s not for everyone, but think about this for a moment. Why do we all leave home when we’re 18 completely hell-bent on never coming back and getting our own place? Because we have no concept of money. In fact, we are 100% financially illiterate at this point of our lives. As soon as we realize that we’ll be our own boss at the age of 18, the first thing we think about is moving out. No rules. Do what I want, and when I want. That’s what we think is important?
What if you got paid to stay at home? Because that is exactly what would happen. Instead of paying $700/month in rent, you pay $0/month in rent. That’s like paying yourself $700/month to put up with your family! Maybe it won’t be so bad if you look at it that way…
What if you joined resources with your loved ones and grew your wealth as a family? Some cultures still do this, but not Americans. We all want to have our own-everything. We need our own cell phone bill, internet connection, TV, etc. It’s great for Companies like Time Warner, Cox, and ATT, but it’s a huge waste of money for you and me.
Just imagine this… Start from your grandparents. Imagine they used this philosophy. So, every one of your aunts, uncles, and cousins from that blood line all lived on the same property. How much money would you all make together per month? What could you afford? My guess is, you’d be able to afford a MANSION. Not only that, you would probably have money for in-house staff to do your laundry, cook you meals, and do the cleaning. I did the Math for my own family, and though I don’t know exactly what everyone makes, we were at nearly 200k/month in income. Now, there are dozens of people involved here, but how much home could we get for 50k/month? We’re not talking about houses anymore, we are talking about Estates!
As a Family, you would have more money and resources than you would know what to do with. As individuals, some of us struggle just to pay the bills and many stress frequently about trying to save for retirement. It doesn’t have to be this way.
Other topics discussed on today’s show:
– How is the JUMBO Market in San Diego holding up compared to the rest
– Should you take money out of your investments to enable a refinance to a lower rate?
– How the Government structured the HARP program to make sure not many people would actually qualify for it
On-Air Guests today:
Jon Jerotz, Vice President of Mortgage Lending with Guaranteed Rate and a San Diego Mortgage Guru