FROM KEN'S DESK
by Ken Pieper
Waiting: A COSTLY MISTAKE
Many of us have had the experience of wishing that we had taken advantage of a decision on a purchase that had increased in price. I know I have in the past. Investments, travel, memberships to a club, vacations, and yes, even housing. I will deal with the subject of the purchase of housing in this article.
We are indeed living in very challenging times with the Covid-19 pandemic. We are told that in order to say as safe as possible from this terrible disease, we should just stay in place and wait things out, correct? Well that’s probably very good advice but at the same time, life is still going on, the sun comes up every morning and the cost of housing is still going up.
According to the latest national, regional, and local numbers that are available new housing prices this year have increased around 4% to date. A puzzle indeed but with all of the unemployment and uncertainty, the one industry that is thriving is in the construction of new housing.
Just what does that mean to you, the person sitting on the fence waiting to start making your dream a reality? Let’s examine some real numbers here.
First – Are you making more than 4% on your investments?
Most folks today are making an average of 1 to 1 1/2% on their investments.
Second – Has your income gone up more than 4% this year? Less than 5% of our population this year have increased their earnings.
Third – Have you already purchased your land? Raw land is a negative investment until you improve it with the house as you start paying property taxes.
Fourth – Are you any happier where you now live? Has you neighborhood improved this year? Most have not, especially in the urban environment.
Fifth – Are you still renting? You know that’s not a wise investment especially with the interest rates hovering around 3% on a home mortgage.
Sixth – Is your dream about a owning a home still alive?
A dream without a goal or positive action will always remain just a dream.
“According to the latest national, regional, and local numbers that are available new housing prices this year have increased around 4% to date.”
These are just a few questions to ask especially now. There are of course many more to consider but these will allow your conversation to broaden and hopefully result in you making the decision to move forward on making that dream become a reality now.
I have been in this Design/Build industry since 1965 and I know from past experiences that the absolute best time to build your home is now! Don’t allow this opportunity to become “I WISH I HAD” scenarios…
Until next time, enjoy the journey and should you have questions or comments I would love to hear from you!