Real Estate ~ The Weirdest Investment

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I don’t really think real estate is a weird investment, not in a bad way anyway. But I do think it’s unique and unusual in the way that it’s our largest investment, and it’s really the only one that we can actually touch, feel, be inside, experience, and grow emotionally attached to. I mean, I guess you can be emotionally attached to your stock portfolio, but definitely not in the same way that people get attached to their house.

People’s homes are their safety, their shelter, their haven from the outside world. It’s only natural that we have an emotional connection to them on some level. We experience our lives in them, whether it’s memorable dinner parties, intimate moments with loved ones, or sad times that we endure… we literally experience them in what is also a large financial investment {that is hopefully growing in value}.

You won’t have a great dinner party in your 401K, that’s for sure. And you won’t agonize over moving out of your Amazon stock because you raised your babies there for ten years.

How often are you thinking about your home from the perspective that it’s a financial investment, and how often are you experiencing it with your heart and emotions? When you think about repairs and maintenance, are you considering how that impacts the health and financial value of your investment, or are you maybe just stressed out thinking about the immediate cost, or avoiding the perceived hassle of dealing with it and putting it off?

I see so many spaces that aren’t cared for or kept up in a way that reflects the reality that this is someone’s biggest investment, and most valuable asset, which is something I find really fascinating. People will obsessively check their stock or 401K value, but how often are you checking in on your home’s value? {And no, that Zestimate isn’t accurate.}

Take a minute and shift into investor mode and assess how this asset looks in present time. Could it use some attention? I’m not saying you need to completely overhaul and renovate your space, but there might be some projects that you’ve been putting off, or some tending that could be done that could really make a difference in the big picture.

If you are even thinking about selling in the near future {like the next year or two}, talk to your real estate broker now to get a clear picture of the value of the asset in it’s current condition. then you aren’t guessing, or getting attached to a number in your head that might not be accurate, or realistic.

You can also talk with them about potential projects or repairs that can help increase its value and set you up to get the maximum return on this investment. This empowers you to be able to make strategic, intentional decisions regarding your house and not just guess at what will or won’t be adding to the value. You talk to your general financial advisor once a year at a minimum {hopefully}, how often are you checking in on this investment and re-assessing? Look at your house through the eyes of an investor {or a buyer}, how appealing is it? When you walk in the door, what is your experience? Does the space look fresh, has it been well maintained and cared for? If it looks tired and worn out, you need to do something about that.

When you look at a stock, you are also looking at how that company runs and ‘cares for’ their business. The same thing is true for your house, but you are the CEO in charge ~ make it count!

 

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