Axel Meierhoefer ON: Is Owning a House Worth It? Pros and Cons of Homeownership vs. Renting

The Picture of Wealth

In this podcast episode, Dustin and Axel discuss the advantages and disadvantages of owning a house versus being a tenant. Axel advises against owning a house unless you have achieved financial freedom and passive income. They also discuss the 1% rule in real estate investing and the importance of considering environmental consciousness in investments. Axel shares his investment portfolio, which consists mainly of real estate, gold, and cryptocurrency. They discuss using real estate as a lifestyle tool to achieve financial freedom earlier in life and offer a mentoring program to help individuals navigate the real estate investment process. They also touch on Dustin's struggles with finding properties that meet his rental income goals and Axel's unique real estate deal in Santa Fe. Listeners are directed to Axel's website for more information on his mentoring services. About Axel Meierhoefer: As a retired Air Force officer, Axel started his first company in 2005, focusing on consulting, employee skill development, and program management. These areas remain in place these days and have grown internationally. He has always had a love for education and helping people help themselves become successful. As a business owner, he began thinking about applying profits towards retirement, and research indicated that owning tangible assets would be the best way. It’s also the path that the government supports the most, which led him to develop a residential real estate portfolio worth about $1.5 Million. It’s still growing, and many lessons learned are now available for him to teach, coach, and mentor people. On his journey, he has made many relationships, learned about the pitfalls of purchases, and made good and bad decisions that ultimately reached economic independence. [00:00:00] Renting vs. Owning a House Discussion on the benefits of being a tenant rather than a homeowner, unless certain circumstances apply. [00:02:05] Belief in Tesla and its Vision Exploration of the reasons for believing in Tesla's vision and its impact on sustainability and the environment. [00:07:23] Tesla as a High-Tech Company Explanation of how Tesla is more than just a car company, but a high-tech company focused on sustainable and environmentally conscious products and advancements. [00:10:35] Realizing that real estate can provide a lifestyle earlier in life than traditional retirement plans. [00:11:37] Exploring the reasons why successful people invest in real estate, including examples like Arnold Schwarzenegger. [00:12:38] Explaining the IDEA framework for investing in real estate, which stands for Income, Depreciation, Equity, and Appreciation. [00:21:00] Discussing the cyclical nature of property search and the importance of evaluating goals and subgoals. [00:21:56] Analyzing the current real estate market in Western Canada and the challenges of finding reasonable deals. [00:23:58] Explaining the 1% rule for evaluating property investments and considering expenses and cash flow. [00:31:05] Discussion on the benefits of investing in turnkey properties and the role of property management in maintaining and managing the property. [00:31:57] Speaker shares a personal story about a unique real estate experience involving consulting work, moving to a different location, and unexpected changes in clients and property value. [00:34:55] Speaker discusses the decision to keep a property as an investment, unexpected increase in property value, and the potential for reinvesting the profit into more properties. CONNECT WITH AXEL: Instagram LinkedIn Website