Summary
In this episode of Wealth Building Made Simple, host Phillip Washington Jr. and Realtor Rob Lewis discuss the issue of housing affordability in light of higher interest rates. Rob emphasizes the importance of understanding reality and income limitations. Rob also believes that the easiest entry point to building wealth is through real estate, specifically one's primary residence, which serves as a savings account and forces individuals to save money. He acknowledges that higher interest rates may...
Summary
In this episode of Wealth Building Made Simple, host Phillip Washington Jr. and Realtor Rob Lewis discuss the issue of housing affordability in light of higher interest rates. Rob emphasizes the importance of understanding reality and income limitations. Rob also believes that the easiest entry point to building wealth is through real estate, specifically one's primary residence, which serves as a savings account and forces individuals to save money. He acknowledges that higher interest rates may make it difficult for some to afford their dream home initially, but emphasizes the importance of building equity over time. He encourages individuals to live in a house they own for a few years, build up equity, and then move to a more comfortable situation.
Rob also challenges the mindset that may prevent individuals from pursuing homeownership, suggesting that if they are content in an apartment, there is no reason they cannot be content in a house. The conversation also touches on the idea of buying a home with roommates or friends.
Affordability is not as easy as it used to be if you’re buying the traditional way, so more people may start collaborating to buy a house and enter into an agreement where they will have the house together for a few years. After that, they can either sell it or one person can move out, pay the other their equitable interest in the property, and the other person can keep it as a rental.
There are still opportunities to purchase affordable properties in certain areas that are further out from current economic centers. Housing prices have declined nationally for three consecutive months, making it a good time to buy. Rob encourages listeners to take advantage of the current market and not be afraid to jump in, even if there is still competition for desirable properties.
Chapters
| **Timestamp** | **Summary** |
| ------------- | ----------- |
| 0:00:01 | Introduction to the podcast and topic of housing affordability |
| 0:01:00 | Discussion of higher interest rates and their impact on affordability |
| 0:02:23 | The importance of real estate as an entry point to building wealth |
| 0:03:11 | Addressing the question of how to afford a home with higher interest rates |
| 0:04:24 | The importance of building equity in a home |
| 0:05:31 | Comparison to historical housing affordability in England |
| 0:06:10 | The role of mindset in home ownership |
| 0:07:10 | The benefits of owning a home vs. renting |
| 0:08:15 | The importance of working with a qualified financial advisor |
| 0:09:05 | Discussion of current housing market opportunities and the potential for buying a house with others |
| 0:11:39 | Discussion of buying a house with friends |
| 0:14:45 | Creative ways to make money with a jointly-owned property |
| 0:15:11 | Contact information for Rob the Realtor |
| 0:15:39 | Information about complimentary consults with Philip Washington, Jr. of Stonehill Wealth Management |
Quotes
"Real estate is the easiest entry point to building wealth."
"The best savings account that you could possibly have is your primary residence."
"If you're going to be content in an apartment, what's stopping you from being content in a house?"
"Go get your house. Go get your house. One of the best opportunities that I have seen personally in the last five years...."
"I think we're going to start seeing more people that like now let's say me and you are graduates. We're 30 years old and single. I'm like, hey, bro, let's go buy a house. I don't plan on getting a wife anytime soon. I don't want to miss out on this property. Let's just go buy a house together."
Social Media Handles
- Follow Philip Washington, Jr. on Instagram (@askphillip)
- Subscribe to Wealth Building Made Simple newsletter (https://wealthbuildingmadesimple.us)
Phillip Washington, Jr. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.
