What Are Your Real Estate Resolutions?

New Year Cover 2015 cropped

Yet another year comes to an end.  Hope 2013 was a good and memorable year for you.  As we enter 2014, we wish you the full optimism, energy, and momentum that come with the arrival of a brand new year.  We want to encourage you to put your New Year’s Resolutions in writing.  It’s been proven that when a goal is written down, you have a much higher chance of achieving it.   We hope you will achieve your goals are realize your dreams in 2014!

Here are some ideas for consideration in your real-estate related resolutions:

  1. Upsizing:  current home getting too tight? Have a growing family? Average move-uppers purchase a home 1.5 times larger than their current home.  For example:  they move out of 1,500 Square Feet home into 2,250 Square Feet home, or  from a 2,000 to a 3,000 Square Feet home.
  2. Downsizing:  Have rooms that are never used?  Maintenance of a larger home getting tiresome? Most downsize to simplify or lower the cost of living.  But many downsize to increase quality of life.  They purchase smaller homes in the same or higher price range of their larger home, by moving to more desirable area or into a more upgraded home.
  3. Purchasing:  It is still possible to purchase a home with a monthly payment lower than the cost to rent it.  Home ownership is still the quintessential American dream.  Are you ready to become a home owner?
  4. Selling:  Changing priorities and plans have you thinking about selling your home?  Is it time to re-evaluate your investment properties?  It’s important to have a professional consultation in this changing market.
  5. Real Estate Investing:  It’s been said that majority of the wealth in Unites States has been made in real estate.  There are so many facets to real estate investing.  We are happy to share with you what we know.
  6. Bonus: Creative Use of Real Estate:  Here is a creative way to look at real estate.  I will soon be in the market for a new car to replace the 10 year old family minivan.  For the most part, a car is a depreciating asset.  It’s worth less each day you own it.  Whereas for the most part, real estate is an appreciating asset.  I rather own real estate than a car, but I need the use of the car.  So what I will do in 2014 is to buy a rental property with the same down payment it would cost me to buy the new car with cash.  This property will generate the monthly positive cash flow to cover the monthly car payment.  So in the end, I will own the property AND the car!
  7. Bonus 2: College Savings Plan:  Is there a new born or a young child in your own or extended family?  Consider buying a rental home for the child.  Let’s say you can do it with a 15 year mortgage and 25% down.  When the child is 15 year old, he/she will have the property free and clear.  It can be sold for college tuition or any other financial need.  Or when it’s paid off at that time, the future monthly rental income can cover the child’s expenses.

These are just some ideas. Hope this is helpful to you, if you like to keep an eye on real estate related matters.

Okay!  We will stop right here.  Happy New Year!  As always, if you have any real estate related questions, give us a call! We are happy to discuss real estate even when it’s not business. And, we love referrals!