Thinking about buying a house? Thinking that it will be a great investment? Think again! Let me show you why owning a home is not the investment opportunity you might think it is...

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WHY YOUR HOME IS A BAD
INVESTMENT
A Visual Guide On Home Ownership & Personal Cashflow
Joel Wenger
Invest Safely, LLC
The information contained in this guide is for informational
and educational purposes only.

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IS THIS A GOOD INVESTMENT?
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INCOME
EXPENSES
ASSETS LIABILITIES
PERSONAL BALANCE SHEET
PERSONAL
INCOME
STATEMENT
USE A “CASHFLOW” PERSPECTIVE
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ASSETS (+)
YOUR HOUSE IS AN ASSET…
The average home is worth an estimated $221,000
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LIABILITIES (-)
…THAT COMES WITH A LIABILITY…
The average mortgage is worth an estimated $222,260
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ASSETS (+) LIABILITIES (-)
…WHICH IMPACTS BOTH SIDES OF
YOUR PERSONAL BALANCE SHEET…
ASSET – LIABILITY = NET WORTH
$221,000 - $222,260 = ($1,261)
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…AND YOUR PERSONAL INCOME
STATEMENT
The average monthly
mortgage payment is:
$996
INCOME
EXPENSES
ASSETS LIABILITIES
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BUT WAIT…THERE’S MORE
InsuranceWaterHeat
ElectricityMaintenance Phone/InternetCable/Satellite
Property Taxes
Assoc. Fees
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$715 PER MONTH MORE!
$64$51$75
$121$63 $71$86
$151 + $33
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CASHFLOWS CREATED BY YOUR
HOME
INCOME
$0
EXPENSES
$1,711
ASSETS (+)
$221,000
LIABILITIES (-)
$222,260
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THE ONLY "GOOD" INVESTMENTS
ARE THE ONES THAT MAKE YOU
MONEY
INCOME
(MONEY)
EXPENSES
ASSETS
(INVESTMENTS)
LIABILITIES
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FOR MORE INFO…
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15. "As to methods there may be a million and then some, but
principles are few. The man who grasps principles can
successfully select his own methods. The man who tries
methods, ignoring principles, is sure to have trouble."
- Ralph Waldo Emerson
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