Thursday, May 31, 2012
I spoke to a woman who had about $75k in an account that she didn't even know she had.
The lady rents a nice apartment in a nice area for about $1200,00 a month.
When she left her old job she told me that she wanted to buy a used Range Rover for about $50,000.
In this market, people often only stay in the area for three to five years to work on projects at one of the many refineries.
This has caused a huge market for those only looking to rent houses - and the prices for doing so have risen dramatically.
If the woman would have bought the house and used the rent money to pay for her Range Rover - In five years, she would have had a Range Rover and a House (which would still be generating income) both fully paid for.
In the end, the stupid girl just bought the Range Rover.
(On the bright side - one of the woman's co-workers heard my advice and bought two houses for cash and financed a Maxima with money left over each month from the rent collected on the homes to service her new purchases.)