James

We are back in your life and today, owner-occupied versus investment property, what builds more wealth?

Mike, last week we talked about how to upgrade to your forever home.

But at the end, we were like, well, actually, should people even be doing that?

Or should they be buying an investment property instead and staying in their current home?

So that's what we're going to tackle today.

So let's start with the core difference between owner-occupied homes and an investment property.

Let's break it down.

And why do people default to just upgrading their owner-occupied home?

People aren't just, yeah, well, upgrading a house is never fun.

But you get a bigger box to live in, right?

You get maybe that extra bedroom.

Okay, well, let's talk about the wealth trade-off and kind of what's really costing people.

So every time you upgrade your home, you're not just spending more, you're giving something up.

The problem is that most people never stop to think about what the trade-off actually costs them in the long term.

So if we think about a bigger home, Mike, what are some of the trade-offs?

financial freedom, early retirement, all that kind of stuff.

Yeah, yeah.

I definitely have some thoughts on this, which I'll come to in a second.

You've got a scenario for us, though, the first scenario where they upgrade their owner-occupied home.

Just one piece on that, Mike.