Is it a house or is it a home? Is it an investment or is it a place to live in? Is it a piggybank to increase a lifestyle? Is it an income producer? Is it a good time to buy now?
These questions have been swirling around, since I have been old enough to understand Real Estate. Ever since I became a Realtor, I have always advised buyers not just first-time buyers, that they should not look at it as an investment. Rather a place to call home and where to live and consider the increase in value as a bonus.
These questions always follow, well what if the market crashes? My point and advice has been the same, if you live in your home you just stay there until the market returns. Hence the key take away is consider buying a “home where you can live, no matter what the market is doing”.
I have had Investors who were looking fifteen to twenty years ago for income properties and when there were no Duplex or Four-plex inventory, I suggested that they should buy a Single-Family Home and it would be just as valuable to generate income. Most thought I was clearly not wise to even suggest something like that.
Now I hope those who did not listen to me are reading this post, since not only did I give sage advice, but they could have been cashing in now during the inventory crunch by selling these Single-Family Homes with mega profits.
Not to rub it in, recently I read an article in Business Insider, that savvy investors have bought close to $77 Billion’s worth of Single-family homes in the past eight months or so. This is up from last year when investors bought about $55 Billion’s worth of Single-Family Homes.
Clearly Institutional Investors are diversifying their Real Estate Holdings by recognizing this trend of outward migration. Due to the Pandemic, people are choosing to move out of the congested downtown apartment life and are trading their downtown digs for a bit of front and back yard.
There is also an age factor that influences this decision. There is a very youth centric vibe living in Downtown Los Angeles and has been for the past fifteen years. Now these group of renters are choosing to start families. Hence, they are opting for a suburban life style.
If you are looking for a Realtor in the Greater Los Angeles area who will give you savvy advice, please reach out to me directly.
Wishing you a safe and healthy life and I look forward to your comments. If you are looking for a knowledgeable, focused and goal-oriented Realtor in the Beverly Hills area who will help you achieve your Real Estate goals, please reach out to me directly! If you are looking for a pet friendly Beverly Hills Realtor who can handle and sell the most difficult properties that no one else could, please reach out to me directly!! If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at 310.486.1002 ( m) homes@endrebarath.com or visit one of my websites at https://www.endrebarath.com I contribute a portion of my commission to local animal rescue organizations. Endre Barath, Jr. Realtor at Berkshire Hathaway HomeServices California Properties DRE#01238708
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