Buyer Tip: Your primary residence should be a home first, an investment second

Disclaimer:  This is my opinion, and any and

all readers are free to disagree, if not stone me in town square. 

(We don't have a town square, so I should be safe)

 

I come across a lot of buyers who get so caught up in the mathematics and economics of the home price that they can never really pull the trigger.  Questions like:

• How much will this place be worth in 5 years?

• What if the market tanks?

• Am I going to be stuck in this home for years to come?

• Can I make 20% in "X" years, after closing costs?

 

Answer to all of the above:  "I don't know". 

Elaboration:  "Nobody knows". 

True statements. 

 

Did anyone closing on 9/10/2001 anticipate, on that gratifying Monday morning, that their home value faced an uphill battle unseen in our country's history?  I bet not.  Could we predict today's alleged "worst economic disaster since the Great Depression"?  No. 

 

So here is my point, short and sweet (for once).

 

If you truly want to buy a home, ergo a place to hang your hat and live your life, raise your family or whatever your needs may be, you simply cannot allow yourself to try to be an economist with a crystal ball.  This is my opinion. 

 

Let me clarify a few points.

I consider your money as if it is my own.  I do not sleep well (trust me on this one) when my clients are stressed about their home's value.  More over, I refuse to allow someone to render themselves "house poor" through a purchase.  Life is too short for me to "force" you into a  deal for the sake of my commission.  You lose, I lose. 

Yes, the goal is to have your house perform as an appreciating asset, in which you have equity that grows at a rate beneficial to you when it comes time to sell.

I want you to sell your house, wherein you sign a HUD-1 settlement statement that reads: "Net Proceeds to Seller: a number higher than zero"

 

That said, you must decide your goal when buying a home.  Is this an investment, or is this a home?  Which takes priority?

 

If you rent, you cannot control the repairs, the appliances, nor can you control the assurance that you will have a place to live at the end of your lease term.  Owning a home offers security and peace of mind.  If you are buying with the intent of staying there for 2 years, then sure, it could be dicey.

 

But if you are looking for a place to call your own, then you need to come to terms with the concept that, through the peaks and valleys, as long as you make the payments, this is your home.

 

Call me crazy, but there is no sense in buying a home if you are going to track the value like you track your investment portfolio. 

Buy it, own it, love it. 

 

If you read the aforementioned content and have the opinion that, "this guy is a shark, and just wants to make a sale, and doesn't care about me possibly losing money", read it again - you missed the entire message.

 

"There's no place like home." 

Dorothy was on to something there.  You just need to be sure you agree with that statement before you decide to buy a home.  If you are worried you cannot maintain the payments for the duration of your time living there, then the answer is obvious - wait until you can.  A master bedroom in a home you own is wasted if you cannot sleep well in it at night.

Realtor, GRI

Blackburn Properties

Austin, TX

(512) 917-0834   AlexMorrisRealtor@gmail.com

"Waving People Home Since 2005"