Rent money is DEBT money.

When I was 18 years old, I got my first full-time corporate job. I wore a shirt, I had meetings about meetings, and I thought, talked, and acted like I was a highflyer of the corporate world.

I actually worked in a call centre but let’s not focus on that 😊

What does one do when they’ve just made it?

They get a credit card.

I asked for a $1000 limit. CBA in their infinite wisdom gave me a $3000 limit.

My underdeveloped prefrontal cortex and I hit the town. I maxed that card faster than a hare in a greyhound race.

Little did I know that not only did I need to pay that money back, the CBA wanted a little extra on top.

It’s fair to say my first experience with credit did not go well.

I swore from that point on – no more debt. A man must know his weaknesses and access to money I hadn’t yet earned seemed to be mine.

It would be over a decade until I discovered a concept that would shift my thinking completely.

Rent money is DEBT money.

Think about it.

You must pay for it, otherwise, you won’t have a home.

But really, what you’re paying is someone else’s mortgage.

And the amount you’re paying is only going up.

Historically, rents have increased by 4% to 5% a year.

In the last 2 years, they’ve been increasing by over 10% per year.

With population growth in Southeast Queensland surging and home building approvals falling off a cliff, this pain isn’t going to stop anytime soon.

Compare this to a mortgage.

Part of what you pay is interest but over time, what you are actually paying off is a home that you will fully own.

You are in control.

Concerned about interest rates? Lock them in.

Feel like you’re paying too much? Refinance to another bank.

I thought I had been debt-free renting. I thought I was obligation-free. What I realised was not only was I deeply indebted as a tenant, I was getting none of the benefits of being a homeowner!

Empowered with this knowledge, I bought my First Home relaxed and with confidence. My home has gone up in value quicker than I can save but more importantly, the stability, friendships with my neighbours, and sense of community it has given me have been worth more than money could ever buy.

Prove it to yourself, if you keep paying rent, how much will you be paying in 10 years’ time?

If you bought a property, how much would you make over that same period?

Rent is the worst kind of debt.

No control.

No benefit.

It’s all the pain and obligation of a mortgage, with none of the upside.

If you have to pay the money anyway, why wouldn’t you pay off your mortgage rather than someone else’s?

Do you know someone who wants to buy a house but is scared of debt?

Send them a link to this article.

Stay Positive.

Be Determined.

Build memories in a home you love.