Rainy Day

By
Real Estate Agent with Keller Williams

You know, some people's parents told them to "Save up for a rainy day."  I, on the other hand, never had those parents.  Being the product of divorced parents, I watched my mom work, pay rent, and buy lots of things we never needed.  During the summers when I was with my dad, I watched him spend like crazy on credit cards and live way beyond his means.  The whole concept of "planning for my future" was very foreign to me.  That is, until I met my friend Nona. 

Nona came from a very traditional Tongan family (Tonga is an island in the South Pacific).  Her family was very big on saving, living modestly, and owning property.  "You are making good money now," She told me one day over coffee.  "You need to buy your first home." 

"My first home!  What!?  I'm 19 years old", I thought to myself.  I should be worrying about when the newest Coach purse comes out!  After some discussion with friends, family and a lot of prayer, I thought, "Why not!"

I was living in California at the time.  It was 2002, when interest rates were 1%- okay, maybe not 1%, but they were low!  I asked if anyone knew of a good agent, she then put me in contact with a mortgage company, the next day we went out looking and the day after that... I put in a full price offer on a Condo in the Valley.  It all happened so fast. 

I had only lived in my condo for about 12 months, when certain circumstances in my family led me to move back to the Midwest.  You would think that only living in a home for 12 months, I would have walked away with little to no money right?  Not in California!  My condo sold for $15,000 over asking price in one day!!!  At 20 years old, I had made a $30,000 profit on my first home! 

Please, don't get me wrong.  I am not bragging.  If anything, I would want people to know that if a small town, 19 year old girl from Neodesha, KS can make money in real estate.  Anyone can!  Buying that first home is always scary, put think about the payoff in the end.  It's a great way to save, without realizing you're saving! 

Now, that is saving for a rainy day!

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Rainmaker
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Chris Lengquist
Ad Astra Realty - Olathe, KS
Kansas City Real Estate Investing

Layna - You bought a place to live in because it was a smart thing to do.  And you were fortunate to do so well after one year. 

On the other hand, what Mott is talking about is speculating.  Buying a place hoping it will continue to appreciate 20% a year BEFORE IT'S EVEN BEEN BUILT IS SPECULATING...NOT INVESTING.  Sorry for the caps, I just get tired of saying it.

Buy a home to live in because it's smart and because of pride of ownership and several other factors.  If you are investing, do so with sound financial principles, not because CNN just had a story about a run up in prices in San Diego.

May 02, 2007 10:04 AM #1
Ambassador
2,491,688
Fred Griffin Tallahassee Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

We invite you back to ActiveRain in 2017.

  Much has changed since your last blog post.

  Best to you!

Jul 11, 2017 06:41 PM #2
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Rainer
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Layna Lambert

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