It's pretty huge actually, and something people often fail to see until it's too late. for most people, your housing expense is most likely your largest part of your budget. When I lived in Maryland, I used to encourage people to consider other areas to live in when they couldn't qualify for a loan in the costly suburbs of Washington DC. Some people thought that was extreme, and it was. I eventually put my money where my mouth was and moved to a suburb of Phoenix, Arizona. Granted, my move was not solely based on finances (my wife had become very ill), but we very quickly appreciated a 62.5% reduction in our housing expenses, without giving up much space. This was a breath of fresh air to us because mot only was the real estate market much slower, but my wife had gone on unpaid disability due to an acute hormonal disorder stemming from a neuro-toxin which rendered her incapable or working (or doing any of life's daily functions).
Now I was in a position to experience what I had encouraged others to do, and you know what? I wish I had done it sooner. I did a calulcation and saw where I would have been ahead by nearly $100,000 if I had moved just two years sooner. Most of this was due to paying a higher housing payment, taking out equity loans instead of cashing out, and taking huge real estate losses. While I did enjoy much of the DC life, I realized that because I worked so much, I didn't have the time I desired to enjoy my family and friends. I also hate cold weather. I still work a pretty intense schedule, but the difference is that now we are working much more agressively towards our goals of financial freedom, rather than just working to pay bills. If it sounds strange to hear someone in the real estate business talk like that, guess what? We are normal every day people and we've got bills too. In fact, there are fewer of us in the (mortgage / real estate) business becuase of the radical shift over the past few years. Also, many of us who own businesses carry more financial responsibilities that the average person, so it's all relative.
Recently, I spoke with two people considering changing locations for the purposes of a better life. One is leaving the DC area for New England, where he has a network of family and friends. Another person I spoke with is considering moving because the job market where he is (Florida) is not so great.
So if you are stuggling to make ends meet, facing a foreclosure, or just want a better quality of life, consider making a (seemingly) radical move to another area, where the real estate isn't as costly. Contact me and I will be glad to help you put together a game plan.
Wishing you success, and a lifestyle that few can dare to dream!
~ Anthony
Comments(8)