Own Thy Home

Larry Janesky: Think Daily

Sometimes it is best to rent.  When you rent your space you can move out as you grow and not have to deal with buying and selling your building.

By owning your space however, you may be able to have the same payment AND build equity.  One half to two-thirds of your payment may be principal.  Over time you are building lots of equity and one day be able to harvest it.

Of course, you are responsible for the big repairs.  A roof can cost a fortune.  (Stay away from flat roofs if you can.)  Repaving the parking lot can cost a lot, and replacing the HVAC units can be a very big cost too.  If you rent, these are taken care of by the landlord.

I own nearly all the buildings I occupy.  It suits my long-term view of business ownership and growth.  Time flies.  Today, I have zero in mortgage debt.  This makes my breakeven lower, and my margin of safety if business cycles down much larger.

I’m a buyer.

Mark Domogala

Get a loan calculator on your phone and play around. Know about interest, the cost of money, and the time value of money. Understand mortgage payments vs. rent. It’s an important skill for any businessperson to develop.
I think these are important topics for everyone to understand in everyday life, especially young adults.

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