With the rise and fall of the housing market in Central Florida, We have become a little more concerned about taking chances when it comes to our Real Estate investments. Real Estate has always been a consistent and safe long term investment, a place to raise your family, and a safety net for retirement expenses. Our perspective changed when the market was going up so quickly and we began to use our home as a “liquid” asset… taking out 2nd and 3rd mortgages without using them to improve the property, and while so often, paying for vacations, cars, boats and so many other consumables. I hate to think about… I am guilty as charged.
The Banks made it so easy for us to take our eyes off the reason we purchased a home in the first place… Quiet Enjoyment with family and friends with a safe long term investment.
Well let’s look back at the last 20 years assuming we had the same resolution as our parents….
The average price in Florida in 1994 was $87,000… today it’s running closer to $208,000… A 4.5 % increase in value each year! Through the worst recession in nearly 100 years…. Today, You would only owe 48k even if you mortgaged 100% which you were not able to do unless you were a Veteran (by the way, Veterans Still have 100% mortgages available) and your loan balance would be around $48k… which translates into $160,000 cash equity in your home. I just looked up a real Orlando example … if you purchased a resale 2 bedroom townhouse in Orange Tree in Dr. Phillips for $115k in 1994, the value of your property today would be around $218k--$240k. Not too bad...
Don’t be afraid of purchasing Real Estate…Or making sound improvements to your current house… The decision to Buy, Sell and Improve Real Estate is still very sound. Carol and I are here to help you anyway we can… Happy New Year!