We hear a lot about the 1st and 2nd in relation to real estate. Too often it has something to do with loans and not what it should be about.
1st time buyers are courted by new agents as an easier source of business. Everybody is new to the game and we want to "specialize" in something so the 1st time buyer is a great group! What I want you to understand here is one simple rule.
YOUR FIRST PURCHASE HAS EVERYTHING TO DO WITH YOUR NEXT
So what do I mean? I am telling you to have a strategy in mind. Get inside and ask yourself some questions like:
is this purchase to jump start retirement?
is this purchase going to be a great rental property?
is this purchase going to satisfy my need for 5 years?
Okay, so you know this right? What you may not realize is the long term strategy of building wealth through real estate that begins at the 1st purchase. This property will most likely not be your only residence for ever. What can it do for you now is less important than what it is going to do for you later.
Generation Y listen up! You are coming into a beautiful time as a new buyer. Don't waste your money on buying gadgets that decrease in value. I recently spoke with the owner of a well known high end car dealership that is doing fine during this economy. She was clear about one thing. She said, "Lease what will decrease and buy that which has the history of gain".
I was confused. She sells cars, right? Nope. She supports her family and the families of her employees based on leasing, service and repeat business. They are doing very well.
I have always encouraged people to buy into real estate. Too often folks think it is TOO EXPENSIVE to buy and that is plain wrong. A good broker will help you understand the many ways to take possession of a property and help set goals to acheive financial gain in decent time.
An insiders guide book looks at the 1st time purchase in 5 year purchases. It looks like this:
Own one house for 20 years and receive an average of 5% gain.
Own one house for 5 years and and keep it. Buy another in 5 and so on for 20 years for an average gain of 5% on each one. Can you do the math? Talk about RETIREMENT SAVINGS!
Oh if I had only kept my 1st, 2nd and 3rd... I can only imagine the possibilities.
Hey generation Y are you listening? Learn from your elders and buy now and start your path to financial freedom in what is still a safe and rewarding commitment. Besides, in your own place the colors are your choice, the noise is fine (usually) and the nails in the wall can be anywhere you want them!
Until next time,
Erick
