1. YOU SPEND MORE MONEY ON REAL ESTATE THAN ANYTHING ELSE
On average, residents of California spend between 24 and 30 percent of their monthly income on Housing. Transportation comes in at a distant second to real estate, eating up between 13 and 16 percent of annual income (unless you’re an Orange County housewife living well above your means).
2. MAJOR LIFE EVENTS ALWAYS INVOLVE IMPACTFUL REAL ESTATE DECISIONS
Having a Baby? Thinking about getting married? Possibly heading towards a divorce? Maybe you’re thinking about taking a new job or moving off to college. All of these major life events, whether planned or unforeseen, require impactful real estate decisions to be made. It’s best to be prepared.
3. PURCHASING A HOME IS AN INVESTMENT WITH INHERENT RISK
This is a bit cliche but home values do not always go up! They might if Janet Yellen happens to be immortal and remains in her position as the Fed Chair FOR-EV-ER (Sandlot, anyone!?) but I highly doubt it. Property values are at the mercy of economic conditions, consumer preference, and about one million other risk factors.
4. REAL ESTATE INFLUENCES EVERYTHING
Let’s take Coffee for example. First, Coffee is grown on land. Coffee is then transported on roads to factories where Coffee is processed. Next, Coffee is stored at warehouses before Coffee is sold at retail shops or cafes. Coffee is consumed at home or work. Finally, coffee is disposed of in a dump. Real estate is prevalent in every phase of coffee’s life cycle and consequently influences its quality, quantity, price, and consumption.
Can you think of anything in life that is not influenced by Real Estate?
About the Author. Greg Robertson is a Broker at Class Realty Group’s San Diego office. He can be reached by email at firstname.lastname@example.org or by phone at 858-333-2422.