Being wise about the buying and selling of real estate can be one of your shewdest tools in your portfolio. Having an agent on your team who can give you the market facts and help you balance emotion, desire, and investment potential can be the difference between making money and losing money. No one is a magician, but you lessen the risk when you have a solid, knowledgable advocate on your side.
And please, oh PLEASE do not go into the poor house to buy a house! And remember that the monthly mortgage (including taxes and insurance) is only ONE of the monthly costs. Be sure to factor in all bills--which may or may not be higher than where you currently are based on when it was built and the efficiency of all the units. A few years ago, we doubled our square footage, yet our bills were cut in half because we went from an older house to a brand new house with high energy efficiency. And even if you're buying a brand new house, factor in a yearly repair budget. Deferred maintenance is one of the quickest ways to lower value in your asset.
The housing market can sometimes feel lightning fast and like you're going to miss something if you don't act today, but more times than not, that's a falsehood. Truth is, fear is a tactic some use to move product. I'm a deal maker and a bit competitive, so I want to close a deal as much as the next guy, but I'm more interested in building a relationship built on trust. And that means I'll wait if I have to if that's what's best for you.
Understanding yourself and the psychology behind the sale is critical to making thoughtful, wise decisions for you and your future. For example, my personality is a marketer's dream. Fear of not getting what I want when I want is a powerful motivator for me. I probably already have 2-of-something buried in a closet somewhere, but, "Oh gosh! It's on sale and I might need this someday!" Marketer-3, Kelli-0. The saddest part is, out of college I worked at marketing agencies--I should know better [insert annoyed Bitmoji]. There's no better teacher than real life experiences and the struggle. And boy have I struggled to learn patience and wise spending habits--by now, I should be the shrewdest cat in town.
I've had to learn to pause, talk myself off the ledge and remember that even if I do miss something, there's always something else fabulous right around the corner. Or maybe, just maybe I didn't even need it--eek! In terms of residential real estate, we don't live in the Old West where it takes weeks to get somewhere and you have to build a cabin on a dirt floor with your own two hands and your ten kids. I'm looking at houses and condos every. single. day. and I can tell you that there's TONS of cool stuff out there with more being built every day. Don't worry! Be wise and build a legacy that way. Our children do what we do, not what we say.
Other personalities need to work on being able to execute in a timely manner in order to take advantage of solid residential real estate investments when the time is right. My mom used to tell me, "Kelli, not making a decision is making a decision, just one you're not in control of." Those were profound words for me. It taught me that lingering in a place of indecision too long is not in my best interest. When the majority of the questions have been answered in the affirmative, make the move. There's always a bit of risk involved in putting your money to work for you. If you have a low risk tolerance, but can objectively see that the majority of the risk has been mitigated, know it's likely time to move.
Financial Stability Means Having a Solid, Financially Minded Realtor
Choose a residential real estate agent who understands the importance of a home purchase being an asset along the financial pathway to get you to where you want to go. You will never get to where you want to go financially if you're mortgaged to your eye balls. The bank wants you at your maximum, because then they own you. Read the article below for some great tips for YOU to be in the driver's seat and not your bank or your emotions sparked from an HGTV show. YOU be informed and in charge!
I can't say it any better than the article, How to Buy a House Without Going House Poor, and I'm never for re-inventing the wheel. Using residential real estate as a tool in your tool belt to help get you get to where you want to go financially is one piece of a diversified, wise plan. I would rather see you in a smart investment or increasing the investment you're currently in, with money going in savings and retirement so we can sell in three to five years at a profit to catapult you into your next investment.
