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🍀Make Your Own Luck

It's St. Patrick's Day this weekend, but you don't need magic leprechauns with their rainbows and pots of gold to get ahead in life!



While we all know that housing affordability is slowing recovering from an all-time low in 2023, things are looking up for 2024 and it's time to start considering how you can make this year count towards your financial future!


It doesn't matter where you are coming from financially, I sincerely want to help you and would therefore enjoy speaking to you about your current situation regardless of how you feel about the likelihood of being able to afford purchasing real estate anytime soon!





Do current home prices seem really high to you? Well, it may shock most people to learn that on a national level, home prices are actually on the trend line for expected appreciation (generally about 4% per year as the national average). In the past, home prices dipped below the trend line (so as to be more affordable than anticipated) and this discrepancy is what made it seem like home prices have skyrocketed at an alarming rate.


The appreciation, while potentially distressing for potential buyers is actually great news for home owners! In the Charlotte area, home appreciation averages around 7% instead of the national 4%, so if homes seems more expensive here, that's simply because they are holding more value due to steady demand.


A local average appreciation rate of 7%* per year means two things for potential buyers:


  • Buying a home can make for a smart investment (remember, inflation averages around 2%* each year so you need assets which increase in value over time)

  • Buying a home sooner rather than later means buying a less expensive home with more appreciation potential in the long run


Chances are you might already want to buy a home for emotional reasons as well - it's simply awesome to have your own place where you know you can live as long as you want and where every renovation and "personal touch" makes for a worthwhile addition. But maybe you haven't considered that the amount of money you are paying monthly on rent could be working for you instead. - Money invested in a home isn't lost; you'll likely recover everything you put in when you sell and get even more from appreciation over time - and if you are renting the home out to someone else then the situation becomes even more lucrative!


What is notable is that home owners have a MUCH higher net worth that of non-home owners. This is in part due to the home acting as a "mandatory savings account", but unlike traditional bank accounts, a home typically appreciates in value at a higher rate resulting in more wealth over time.

So please consider making buying real estate a financial goal of yours! Even if you are predominately interested in owning other asset types, owning real estate can make for a great personal investment - since it can be a home that you enjoy living in every single day and it can also be a great way to add diversity to your current investment portfolio.





I am more than happy to help you figure out what might make the most sense for you for where you are at currently.





Please feel free to share this article with anyone that you think needs help building wealth!


 

*Average home appreciation and yearly inflation percentage amounts based on historical data.


This guide is intended to be used as general information only. It is important to note that the author is a real estate agent and is NOT licensed in law, loan, finance or tax matters. Therefore she cannot give any definitive advice on these topics. If you have any questions about any of the topics mentioned, it is advisable for you to seek out properly licensed professionals so that you can obtain current information that is relevant to your specific situation.




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