Expert Advice: 3 Benefits to Owning a Home

Success is something often worth repeating, and Brent Sutherland, a Certified Financial Planner and Real Estate Investor, has certainly made his way in a momentum-driving direction. Here are 3 tips he shares from a recent piece in Business Insider on the benefits of owning real estate: 

1. Real estate diversifies your income 

“While it is certainly important to be properly diversified with your investments, it is even more important to be diversified with your income. This is because the largest financial risk for most of you is the loss of your primary source of income, which is typically in the form of a day job.”

The article highlights how having multiple sources of income, such as those derived from real estate investments, can eventually lead to relying less and less on a day job. Sound dreamy? It can be. When done well, real estate investments may eventually open up your time and the financial freedom to explore other things, like travel and other aspirations you may have for the future, particularly in the golden years of retirement. 

2. Real estate produces near-immediate results 

“You can achieve and feel the results almost immediately. Property improvements are visible and tangible. You can cash, spend, and invest rent payments. Today! Not 30 years in the future.”

Currently, home prices are appreciating in all price ranges, and just last week CoreLogic announced their 12-month home value projection at 5.6%, an increase from 4.5% noted earlier this summer. With that in mind, real estate today is definitely driving immediate results! 

3. Passive income can help you become financially independent sooner 

“If you need $40,000 a year to live, you could alternatively invest in assets that generate an 8% cash-on-cash return. This is a very reasonable assumption. And it means you would only need to save a total of $500,000 (instead of $1 million). Yet, your investments would still meet your annual household living needs.

While returns, taxes, and inflation can, of course, affect your timeline, cash-flowing real-estate is a clear asset.”

Homeownership is a form of ‘forced savings.’ Every time you pay your mortgage, you’re contributing to your net worth by increasing the equity in your home, bringing you one step closer to true financial independence. 

Bottom Line 

If you want to increase your savings and overall net worth, real estate is a great way to go. To learn how you can make it happen, let’s get together to discuss the process.
Who is Brent Sutherland?

Sutherland was 35 when he bought his first single home to rent out for income, less than five years later, he owns eight additional properties and part of a commercial real estate project.

Looking to Buy, Sell, or Invest? Contact:

David Demangos - Keller Williams Realty
Cell: 858.232.8410 | Realtor® DRE# 01905183
www.AwesomeSanDiegoRealEstate.com
Our Team Goes to Extremes to Fulfill Your Real Estate Dreams!

San Diego Real Estate Expert | Global Property Specialist
Certified Luxury Marketing Specialist | CLHMS Million Dollar Guild Agent
Green Specialist | Certified International Property Specialist
2016, 2017 & 2018 Recognition of Excellence Award Winner SDAR

4 Ways to Minimize Buyer Surprise

When people say they dislike surprises, it’s a little bit like when someone says they don’t like change. Most people actually appreciate change and surprises – so long as the changes are pleasant or they perceive the surprises to be in their favor. It’s really only unpleasant surprises that agitate, irritate and frustrate the average person.

I've found there is actually a pretty short list of unpleasant surprises which threaten to sour your home buying experience. If you can take a core set of actions to minimize the likelihood of this short list occuring, you’ll protect yourself against 90% of the unpleasant surprises and set your home buying experience up for success. Here are a few of those key surprise-prevention tactics that can take your fear of the unknown.

1. Read everything. It sounds basic to advise a home buyer to read their paperwork. It sounds basic, that is, until you’re in the midst of the process and are presented with literally hundreds of pages of documents to sign, sometimes over and over, and sometimes with a high sense of urgency. For example, if you are in a hot market, you might have to make offers on 5 or more homes before you get one that works for you. After the first few, it’s tempting to just start clicking away to sign the offer documents you’ve seen so many times before, without really reading the critical fine print before you send it back to your agent.

While it is socially uncomfortable to feel like people are sitting across the table waiting for you to read things before you sign them, your agent, mortgage broker and escrow officer really and truly do not mind. (And if they do mind, that’s really not your concern – read away anyway.)

Most smart buyers these days know they need a home warranty policy. But without reading what is and isn’t covered, you do yourself a disservice. Many policies offer optional extra coverage for a small fee of items like appliances, pools and air conditioners – which would normally be excluded under a standard policy.

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David Demangos
858.232.8410 
David@DemangosHomes.com
www.DemangosHomes.com
I go to Extremes to fulfill your Real Estate Dreams!

People's Tenure in Previous Homes

Most people sell their homes because their life situation changes. They have children and need a bigger place to live. Or they retire and downsize. Perhaps they take a job in another part of the country. Interestingly, part of the reason the real estate market is so depressed (on average) is that those factors have been minimized. They take a job in another part of the country? Far less likely now. They retire and downsize? Lots of people can't afford to retire. They have children and need a bigger place to live? Birth rates decline in recessions. And people have discovered they can put multiple kids in one bedroom. I interviewed several agents and the average opinion was 7 years.

After understanding these few reasons above we see why more are staying in their homes longer. If you know anybody looking to buy or sell their homes, contact me:

David Demangos

858.232.8410

David@DemangosHomes.com

www.DemangosHomes.com

I go to Extremes to fulfill your Real Estate dreams!