Jim Valentine: Real estate is not a spectator sport

Jim Valentine on Real Estate

Jim Valentine on Real Estate

In these turbulent times it is good to be in the game, not on the sideline watching. If you are wondering what others are going to do or how you should respond you will be following the market. If you want to make good real estate decisions, you must continue to be in the game.
There is not much occurring in the world that is, or could, affect the real estate industry that it can be overwhelming. Don’t let it get to you. There isn’t much you can personally do to help the Ukrainian war situation, or the high inflation in Europe and the U.S., the cold that will be experienced in Europe due to fallout from the war, etc. We have mid-term elections coming that will certainly cause the negative campaign rhetoric to be ratcheted up a few notches such as to make your head spin.
Through it all, you must remain focused on you, your family and what is important in that regard. The world won’t stop if you put your life on pause. It will in fact continue to spin ever faster during the uncertain times as we move into winter and all that it brings us. Inflation is the proverbial elephant in the room right now that may be causing you some financial discomfort, but don’t let that stop you from assessing what your situation would be as a property owner if you were to buy a home, or the relief you would feel if you were able to sell your property now. In either case, if you opt to sit on the sideline and watch you might find yourself frozen because you aren’t keeping up with the many adjustments that are impacting the real estate market as they occur which you would be if you are in steady communication with your agent.
As we mentioned recently in one of our articles, if you are paying market (exorbitant) rent you could likely buy a home at an increased rate of interest and be in the same position you were when you were looking last year when you got blown away by cash buyers and high prices. Prices have adjusted a bit and there are fewer buyers competing manically. There are other buyers out there so don’t be complacent in your efforts. They aren’t, however, making reckless offers and neither should you.
Owning a home means stability. No rent increases, no notice to vacate so a cousin can move in, and nobody coming in to make sure you are living in compliance. Owning a home gives you tax benefits, and you are buying with after-tax dollars instead of pre-tax dollars (ask your agent to explain). Owning a home gives you the opportunity for appreciation over the long run and you will be looking good when you consider the return on your invested dollar. For instance, on a $400,000 home, if you put down 3.5 percent, $14,000, and make $50,000 profit you are getting $50,000 return on $14,000. Additionally, you get the tax benefits and the emotional return on your investment from the enjoyment of living in your owned home.
This isn’t a time to panic or act out of frustration. Stay the course, study the market, pay attention to the global goings on and how they may affect your local market. With that you will be comfortable moving forward… or staying pat. Either way is OK if the decision is made with open eyes and a good understanding of what is happening. Understand, nobody has the full picture of what is happening, but knowing to the best of your ability is better than sitting back and wondering what just happened and how it might impact things. As always, determine your wants and needs and pursue them with clarity. With that perspective you will be confident with your decision whatever they are.
Get out of the bleachers and onto the sideline or in the game. It is your life, your future, and your decisions to make. Don’t let others guide you, guide yourself and hold your head high as you do it. Real estate is not a spectator sport unless you are settling in for a decade or two in the property you love.
When it comes to choosing professionals to assist you with your Real Estate needs… Experience is Priceless! Jim Valentine, RE/MAX Realty Affiliates, BS.3481, 775-781-3704. dpwtigers@hotmail.com 

Comments

Use the comment form below to begin a discussion about this content.

Sign in to comment