I was reading through one of my favorite blogs by Seth Godin and I found an unusual topic for him to talk about: personal finance. We all know that spending on credit cards is bad (during this time of the year I need to remind my wife about that) – but his post brought up some other good points that need repeated:
Only borrow money to pay for things that increase in value.
It’s a short list: your business, your house and your education, mostly. Stocks if you’re smarter than me. That’s pretty much it.
But you say wait a minute – my house isn’t going up in value – in fact most of the news reports that the majority of americans owe more on their house than what it is worth. So houses are no longer an investment they are an expense! Not true.
Here’s the truth:
Invest in a well designed house that is priced right for your market.
Make your house not a commodity. It’s simple laws of supply and demand – right now there are way more houses on the market than there is demand, therefore the price falls. A house has become a commodity. When you invest in a house make sure yours stands out by having a good location, unique lot, interesting architectural features, a floorplan designed for todays family, and tie it all together with good style. BAM! – Now you have a house that will be sought after – a house that people drive by and they say I want to buy that house when it goes for sale. Your home is no longer a commodity – It is a highly valued Gem in the rough. Buying a cookie cutter house that is mass produced may get you the most Square Feet for your money but does it get you the best return on your investment?
Secondly, don’t over spend for your market just because you want the coolest house. A great designed house doesn’t have to be big or expensive it just takes the right designer and builder to put thought into the design to make a unique house for you.
If you make smart decisions building or buying the right home now will not only be a great lifestyle move for your family, but will also turn out to be a great investment.
