Retirement Investing with Real Estate.
Our past posts have looked real estate investment in the shorter timeframes. This post takes a look at making real estate a part of your retirement portfolio. Whether its Ohio, West Virginia or Pennsylvania, rural real estate can be an important part of a retirement portfolio.
Dos and Don’ts of Buying Real Estate as Part of Your Retirement
When is it the right time to buy a home? Different experts will give different answers to this question. Some might say that you should buy when prices are low so that your property appreciates more over time. These are the people who are interested in real estate as an investment.
However, this article from Forbes states, “housing should be viewed as a place to live rather than an investment.” There are other experts who agree with this idea and emphasize individual needs and wants when buying a home. The right time for you to buy a home might be when you get married or start a family. Or when you need more space for some other reason, such as a family member who’s planning to move in with you.
No matter which of these two opinions you agree with, you’re still going to have to consider both, your finances as well as your needs, when you buy a house. Plus, there are a lot of advantages in using real estate as part of your retirement. The difficulty lies in finding something that suits your purposes without breaking the bank. Here are a few dos and don’ts when it comes to buying a house:
Don’t Go for the Fairy Tale
Sometimes, people have very romantic notions about the type of house they want to live in. You might have always dreamed of living in an English cottage-style home. They look really picturesque from the outside with their tiny garden plots and vines growing all over the wall.
But if you’ve ever seen the inside of a cottage, you’ll know that the rooms tend to be small, without much natural light. If that’s the cozy type of feel you’re going for, that’s great. But if you’re the type of person who likes to have more space, then look for something different.
Just remember not to let romantic notions get in the way of your search for a home; be practical as well.
Don’t Buy a House Based on its Interior Decoration
Sometimes, people go to see homes which are currently occupied by other people. You might fall in love with someone’s plush couches and someone else’s chintz curtains. This doesn’t mean that you should buy that house. That person is going to take their furniture with them. And if you really love that couch, you can buy one just like it and put it in a different house.
It’s hard to do but you have to try to imagine the house without any form of interior decoration. What would it look like if it were totally bare? And what would it look like once you decorate it as per your taste? Take some time to imagine the house in its final form, once you have it. And then make your final decision.
Don’t Go in with Preconceived Notions
This might seem like a tough demand. After all, everyone has certain likes and dislikes, certain things they know they’re looking for in a home and certain things that they want to avoid. Are you just supposed to scrub your consciousness clean of everything you know about buying a house? Unfortunately, you are.
The idea is to start your research when you decide to buy a home. Look at what’s available on the market and at what price. Then make a list of things that you want to have in a home. Let your preferences be determined by availability. The more you look for things that are simply not possible, the more you’re setting yourself up for failure. Instead, think about the array of possibilities available to you and then make your decision. This will also help make sure that you don’t feel any buyer’s remorse later.
Do Shop Around
There’s not much point in falling in love with the first house you see and buying it without looking at anything else. You should look at a few houses that will satisfy your needs and fit your budget.
Then take a look at some other options you hadn’t considered. For example, you might think that you need three bedrooms. But, just for the sake of comparison, you could also look at a few two-bedrooms or four-bedrooms. You might want a house in a specific locality but after looking at a few houses there, you could take a look at some houses in different neighborhoods.
The idea is to get a better idea of everything that’s available out there. So cast your net as wide as you can. You’ll definitely reel something in. PicketReport.com is a great website which will give you information about the neighborhood you’re interested in. You can find out the crime rate of a neighborhood, the amenities available in it as well as its school ratings.
Do Consult Yourself and Others
You don’t want to start taking the opinion of everyone who’s ever bought a house. But it doesn’t hurt to get a few people to weigh in on your decision. You’ll want to consult your family members to find out what they’re looking for in a new home.
You also need to keep weighing in with yourself to make sure that you’re not just going along with what everyone tells you. When you make the decision to buy your house, you need to make sure it feels right.
At Kaufman Realty & Auctions, we guide clients interested in investing in real estate in Ohio, West Virginia and Western Pennsylvania. By using real estate as part of your retirement plan, you diversify your portfolio. For more information about buying and holding real estate properties likely to appreciate, please contact us.
© 2016 Kaufman Realty & Auctions — Site Design by Cassel | Bear