We oftentimes wonder where the real estate market is headed. Are prices going up? Are they going down? Is now a good time to buy or sell? It’s natural to be concerned about the value of our biggest investments.
Whenever someone asks us about the market, we say: our crystal ball is permanently cloudy. It’s impossible for us – or anyone else – to know exactly where housing prices are headed. Prices may continue to increase, or they may come plummeting down. There’s no way to know. But that’s the nature of real estate, or any investment for that matter: there is always some risk. You can never totally mitigate risk in your investments, but you can do some things to make sure it doesn’t sink you when surprises come.
- Always have a strong fiduciary team around you who will give you sober and practical advice about real estate and how it fits into an overall financial strategy. Think insurance advisor, wealth advisor, CPA, attorney, real estate agent. If you don’t know where to find good advisors, contact me, I’ll be happy to make the connection.
- Purchase real estate with the mindset that you’ll own it for roughly 7 to 10 years, in order to weather the up and down market cycles.
- Understand that real estate is a financial decision, not an emotional one. It’s natural to be emotional about real estate, just don’t let your emotions dictate your decision making.
- And finally, if you plan on purchasing a home for a growing family, buy the largest (not to be confused with the priciest) house you can as early as you can. That advice comes straight from Gary Keller, the founder of the largest real estate company in the world…
There it is, my short and sweet two cents. As always, if you plan on making a real estate decision soon, we’d be happy to chat with you about it anytime.