If you are considering buying a beautiful Encinitas home on the pristine Pacific Coast, Linda Moore is here to help! But she also wants you to make the smartest purchase you can. So here’s a few tips uttered by the famous investment guru, Warren Buffet, adapted for our post-real-estate-bubble world:
#1. The idea that homes increase in value – the basic idea of home ownership – is still valid
Homes increase in value over time because the dollar becomes worth less. However, this idea is variable: there is no surefire guarantee that home prices will continue to rise. This idea was shaken by the housing bubble collapse recently. Even though many people lost money on their homes, those who purchased their homes 20 years ago still at least doubled, or tripled, the value of their homes.
#2. Buy Low
Now is a perfect opportunity for buying low, especially at today’s low interest rates. Don’t rush into something more expensive than you can afford, however. Better to buy a starter house than strain your resources on a big, expensive house.
#3. Don’t Wait Too Long to Take Advantage of Low Prices
“Don’t wait too long to take advantage of low prices” was the advice given before the housing crash. Now, it still holds true: the bubble has burst, and will start to grow again. If you are waiting for that bargain basement deal, you might never find it, and pass up many great houses in the process.
#4. Three Elements of Smart Home Ownership
And those would be: affordable payments, a fixed mortgage, and a long-term hold. It was the lack of one or all of these elements that led to widespread foreclosures. It sounds like a simple enough premise, but when everybody wants to live the American Dream (or like Snoop Dog and P-Diddy) and have eyes bigger than their wallets, adjustable rate mortgages and higher-than-comfortable home payments all of a sudden seem like the norm. Buy within your means, and be happy longer.
When considering real estate in the pinnacle of paradise called southern California and Encinitas, realize that purchasing an Encinitas home is a dream come true – but if you want to enjoy your Encinitas home for years to come, make a purchase that fits your needs! Remember-regardless of if your house is big or small-location, location, location!