Rule Five

Sorry I haven't posted in a few days everyone, but I've been really busy lately :(

Rule five is Don't Rent, Buy. Now I know all of us need a place to live, and not all of us have the money to actually buy a home outright, so the majority of people are usually renters. In this case, if you have good credit (see rule one) you should be able to borrow a lump sum of money from the bank to pay for a house. The mortgage itself can be viewed as an investment instead of borrowing. Because in the long term, you can reasonably expect that the interest you pay on your mortgage will be less than the increase in the value of your property. What you are banking on is that the value of your home will, in the longer term, go up, and therefore, you have invested whatever deposit you put down and your mortgage money.

Renting, however, is not an investment. You will definitely never see that money again. But before you go buy a house or condo, remeber to think carefully about how much your mortgage payments (which will be ultimately determined by your credit score) will be and if you can afford to to repay them.