As most of you know, we have a real estate division under our umbrella. It is headed up by my daughter, Jen Kelly. Not just for small business owners, but for everyone, a home purchase is one of the biggest dollar expenditures that most people make. Yes, this is a very good time to buy a home; interest rates are low and so are prices.
There is a caveat; know where you are buying. Understand the future value of the area where your purchase is located. A typical call to our office may be: I want to spend $XXX.XXX.XX dollars for a home and I want the most home for my money in terms of the condition and upgrades in the home. Location and future growth and value of an area is hardly mentioned. Many real estate agents want a quick sale and will give you what you ask without offering the advice that they should.
Buying a home requires many decisions on your part. Are you looking for instant gratification in the way of amenities? Are you willing to trade that, for the benefit of a greater possible future value? When counseling our buyers we go thru a processs which includes these plus many other issues:
- Are you willing to buy a home in an area that offers more potential appreciation and neighborhood stability even if the upgrades are not completed?
- If the home is livable but not totally upgraded, are you willing to grow with the neighborhood?
- Is drive time to: work, quality schools, shopping, recreation, etc. important to you? ( We just had a call from a buyer that bought the instant gratification but is driving a little over an hour to work each way.Now they want to sell and trade that drive time for family time)
- What statistical research have you completed on the area where you are contemplating your purchase?
These are just a few of the consideration that must be looked at when making one of the biggest investments in your life.Just as you must plan for the future growth of your business, you must plan for the purchase of a home. Most of us do a lot of research and soul searching when we invest a few dollars towards our future, yet buying a home is often an impulse purchase.
“Think like a man of action, act like a man of thought”.
Have a great day!