Matt Luke, owner of Luke Properties in Sioux Falls, a real estate investing company, has a passion for owning property and providing Sioux Falls residents with an affordable place to live. With his team, you can build a solid financial foundation by investing in residential or commercial property, or find a home to rent for you and your family. He has an abundance of information about owning property and encourages everyone to invest in their future by buying for the first time or adding to their real estate portfolio with additional properties. Here are a few questions answered about owning property:
What prompted you to purchase your first property?
When [my wife and I] were 23 years old we had a family friend give us money for our wedding. It was specifically to be used for investing and for the purchase of financial development books. We did just that with the money. The one book that changed our lives was Rich Dad Poor Dad. It is a must read for anyone getting in to real estate.
[Matt Luke outside one of his Sioux Falls properties]
What would you tell someone who rents and is on the fence about purchasing property?
Purchasing a home is not an investment. Investments produce cash flow and your house costs you money…its a liability. But with that being said, it is better to pay yourself and build equity than to pay someone else. Also, don’t over extend on your home. If you are not out of debt and you can’t invest at least 10% of your income, then don’t buy a house. Once you are out of debt, then it’s time to look at homes. Purchase a home in the price range where you can pay it off in no more than 15 years while still investing at least 10% of your income.
What positive effects have you seen from owning property?
There is just one positive effect to owning property. Building equity so that when it comes time to retire, you do not have a payment. But don’t confuse that with an investment. You only make money when you sell your house. The point of owning property is to quickly pay it off so you don’t have a payment to worry about.
What do you wish more people knew about owning property?
I wish more people understood how good banks are with marketing. They have brainwashed people in to believing that a home is an investment, it is more important than your retirement and that a 30 year mortgage is a good option. Get out of debt. Stay out of debt. Invest 10%. Buy a house you can pay off in 15 years or less. You will thank yourself when you are ready to retire.
[Two bedroom home available for rent from Luke Properties]
What is your favorite part about owning property?
Our favorite part of owning property are the properties we own that we don’t live in. Those are true investments (unlike your house) that produce cash flow while the mortgage is being paid down by someone else.
If you are looking for your first home or an investment property, contact me at 605.261.8396 or email@example.com. I will work with you and my preferred vendors to help make the right decision for you and your finances.