In short, yes and no. However, it is so much more than just an investment and honestly it’s not a factor I stress to my clients.
When guiding a client through the home buying process, I focus more on their needs, wants, and lifestyle. I’m not focusing on mortgage interest rates, I want to make sure the home is close enough to my client’s child’s school or other necessary commuting. I’m not focusing on the price, I’m focusing on the payments and if my client will have their vacation budget intact. Home is about living life everyday which is not just an investment.
Many view a primary residence as just a home, not an investment, however real estate appreciates over time. Buying a home is the most financially significant thing we do in life and because of that we want to make sure we’re spending our money wisely.
In some circles, real estate is looked at as an investment whether it is a rental, a second home or a primary home. An investment is something we buy for return in financial gain and then we sell when time is right for financial gain.
A home isn’t solely a monetary investment. Most homeowners aren’t looking for the typical buy low, sell high mentality. When my clients and I start their home search, we’re looking for a family home, a place to retire, a place to spread our wings and invite loved ones over for holidays.
For me, I’m helping people find a home and invest their money wisely but unlike a typical investment, monetary gain isn’t a primary focus most of the time. For example, if you were ready to get married, you’d never wait to marry the love of your life until the market calmed down right? And yet home buyers push their dreams off until the market does something different. To all my clients, I recommend getting out of idea of looking at a home as a monetary investment or spending time worrying about interest rates.
When we focus home buying on interest rates, we miss out on the significant emotional aspect of home ownership – like having your child’s next birthday in your own backyard or inviting a neighbor for a BBQ.
I had once put out a blog post that suggested to homeowners that they live in the payment, not the price. Prices change, interest rates fluctuate and that’s just what happens. There’s always a chance to refinance a home so don’t focus so much on rates.
If the time is right for you to buy a home then that’s the most important part and that’s what I love to guide my clients through. Home buying is not just one of the most financially significant thing you’ll do in life but it’s also one of the biggest milestones you’ll hit in life full of emotion. Buying a home is the dream of so many and looking at it as just an investment while focusing on monetary gain or market activity severely overlooks the best part of home ownership.
What is your favorite part of being a homeowner? Are you in the market to buy or sell your home? Call and text me at (720) 323-4176 or email me at [email protected]
