Do you ever feel like everything you read, watch, or hear somehow relates to you? Maybe its because i try to be involved in alot of different things, but sometimes i really feel like a book is speaking to me.
This week i just finished a new book called Death by Leisure, by Chris Ayres. The book is about the late 90’s and early 2000’s before the housing bubble burst. It details the days of easy credit and how one man used this free money and credit to the fullest. This really hit home for me because as a mortgage/real estate professional for the past decade i have seen both ends of the spectrum. People that cant get the credit they need to get a modest home loan, and people who had no business getting a 400k loan on a house that wasnt worth that kind of money to begin with.
What i liked about the book is the way the author used his “empty” life of luxury as a cautionary tale for how quickly it can catch up with you. Think about all the people who are now underwater on their homes because the value has sunk below what they owe. Its not a fun place to be, and although i am in this business to make money, we use only common sense lending practices and help people decide on homes that fit both their needs, dreams, and wallets.
It is so easy to get swept away by the perfect looking home when you are house shopping, but you have to consider the hidden costs if there are any with that home and the long term stability that you might have if you lived there. When customers come in we always try to explain all of the costs associated with purchasing a home, from home owners association fees, to closing costs, and even appraisal fees. We want our customers to be able to make responsible decisions and so we give them as much information as possible because after all besides getting married or having children, buying a new home is often one of the most important decisions a person ever makes.
That being said, in the ends it all comes down to what you can afford and what you will have left over. I’ve never been one to want a home with 80 rooms if i cant afford to furnish the rooms, id rather have 4 rooms and have them all packed with the things that matter most for me, and then maybe have some cash left over every month for a couple steaks, drinks, and nights out with my family.
With that being said, given the current low prices of real estate, if you are looking to the future now might be a good time to buy a house because you could actually get the slightly pricier house for a better price. If its in the cards it is. To figure out the hidden side of the housing market call Treadstone Today!