Arcachon
02-01-19, 08:25
Donald Tepper (https://www.quora.com/profile/Donald-Tepper), Real estate investor and Realtor licensed in Virginia.
Answered Dec 28 (https://www.quora.com/What-is-one-thing-that-you-d-wish-everybody-would-understand-about-real-estate/answer/Donald-Tepper)
There are a lot of things. Here are four:
Your primary residence is not an investment. It shouldn’t be viewed as such. (There are excellent investment properties you’d never want to live in. And there are some very nice homes that would make terrible investments.)
Being a landlord is not a “get rich quick” strategy. You can get wealthy as a landlord, but it generally takes years and years. You’ll find much quicker cash by fixing up houses and selling them, or by wholesaling houses.
You’re not “throwing your money away” by renting. Everyone needs some place to live. It can make a lot of sense to rent if you don’t know the area yet, if there’s a reasonable chance you’re going to move within 4 or so years, and if you understand that during the first few years of a mortgage, almost all your payment goes to interest.
When you’re buying, pay little attention to fixable cosmetic issues—a child’s room painted purple, shag carpeting, old light fixtures. Those are superficial. Pay attention to room sizes and layouts/positions, and the neighborhood the house is in. Those are difficult or impossible to change. Find a house where the “big” things are right, and take care of the rest.
Answered Dec 28 (https://www.quora.com/What-is-one-thing-that-you-d-wish-everybody-would-understand-about-real-estate/answer/Donald-Tepper)
There are a lot of things. Here are four:
Your primary residence is not an investment. It shouldn’t be viewed as such. (There are excellent investment properties you’d never want to live in. And there are some very nice homes that would make terrible investments.)
Being a landlord is not a “get rich quick” strategy. You can get wealthy as a landlord, but it generally takes years and years. You’ll find much quicker cash by fixing up houses and selling them, or by wholesaling houses.
You’re not “throwing your money away” by renting. Everyone needs some place to live. It can make a lot of sense to rent if you don’t know the area yet, if there’s a reasonable chance you’re going to move within 4 or so years, and if you understand that during the first few years of a mortgage, almost all your payment goes to interest.
When you’re buying, pay little attention to fixable cosmetic issues—a child’s room painted purple, shag carpeting, old light fixtures. Those are superficial. Pay attention to room sizes and layouts/positions, and the neighborhood the house is in. Those are difficult or impossible to change. Find a house where the “big” things are right, and take care of the rest.