What’s your return on your biggest investment?

Your home might be your biggest investment, so shouldn’t you be earning a good return on that equity?

Suppose you put a 10 or 20% down payment on your new house. And let’s say you sell in 5 years. If market appreciation happens to be low during that period, it might just cover your commissions and closing costs and now you made 0% return on your equity.

My new book “Don’t Buy a New House! BUILD IT” shows you how you can build your brand new own custom home. And explains that you can save 10-15% or more by having someone build it for you. That’s a lot of equity the day you move in!

Now, suppose instead you put that 10 or 20% down payment toward building your own new custom house. And then you sell in 5 years. And again we assume that appreciation is low during that period and just covers your transaction costs.

If you saved only 10% by building yourself, That’s a 100% return on your 10% down payment, or a 50% return iof you had a 20% down payment. Divide that by 5 years, you’ve made a 10 or 20% annual return on your equity! It’s likely, these numbers will be quite a bit higher, because a new house is very likely to appreciate more in those first 5 years than an older house.

Now we know most people are just not going to want to put in the effort to build their own new custom house. The idea is just outside of their comfort zone.

Yet those same people will go out right now and buy and older home that needs work, And it’s definitely going to need more work over the years they own it! Then they’ll be lucky if they break even when they sell. If they get really lucky, it will appreciate more and they’ll do a bit better.

But instead of starting at zero and hoping for appreciation, Wouldn’t it make more sense to start with a better, brand new house and with a substantial return locked in?

You miss a lot of opportunities by staying in your comfort zone!

My new book: Don’t Buy a New House! BUILD IT Might help you stretch that comfort zone a bit. It will show you how the numbers work and how to find your site and find the people to help you design, spec and build.

Grab a copy on Amazon and learn how it’s done. https://www.amazon.com/gp/product/B09PSFMC6Z/