Some Things Are Certain In Life

As I sit here on a friend’s sun deck in Rancho Palos Verdes overlooking a foggy Pacific Ocean and the outline of Catalina, I realize that despite the chaos on Wall Street, the Euro Zone and the now empty halls of the Capitol, that there are certain truisms that we all live with: the sun rises in the east and sets in the west, we all die, and most pay taxes; the Cubs will probably never win a World Series and real estate is the only investment you can live in; and no, I don’t consider buying a vintage Airstream an investment – though some might argue the point.  I guess that’s why it’s called “real estate”, it’s real, as opposed to imaginary and it’s an estate; after all, a home is a man’s castle even if it’s a 500 square foot studio on the lower east side.

There are just so many things to like about real estate.  There’s the fact that you get to live there, which if you’ve followed the adage of location, location, location, you like where you live and it sure beats the heck out of living on the street, right?  There’s the whole architectural beauty of a home: the roof line, the shutters, arched doors, walls of glass… then there’s the materials: plaster, hardwoods, decorative tile, stone; as diverse and varied as the outside world itself.  I’m always impressed when form and function meet; a great floorplan for example can make each day just a little easier, even if it’s a 1970′s cracker box tract home – a great floorplan is a great floorplan.

Yesterday you could lock in a 30 fixed rate mortgage at under 4%.  When you consider that real inflation is running at somewhere near 3.5%, you can argue that essentially borrowing is free.  I know everyone is focused on debt right now, but maybe aside from college and life saving procedures, is there anything better to borrow for than a home?  Borrow to buy a place to live? heck yeah!  …a place to raise a family, a place to build memories.  “But Tim home prices are dropping, why would I buy now and not wait until later?  Why take the risk?”  Let me think… free money, a roof over my head; a place that if I paint it, I know I’m doing it because it’s mine… free money…

It’s a funny thing about real estate; you only lose money if you sell for less than you paid.  If you are not selling, you can’t lose any money.  Perhaps the one thing the government should have done and maybe still can, is to help compel banks to refinance borrowers who are underwater, owing more on their home than it’s currently, (note the word currently), is worth.  Last time I checked, we hadn’t figured out how to create more land… I suppose there are manmade islands, but you get the idea.  Land is finite.  Of course land is not liquid like gold, but last time I checked, gold won’t keep you dry or warm or safe, unless you use it, and then you don’t have it any more.

So with all the gyrations of the past month, I guess my point is, if you have to put your money somewhere, you might as well buy real estate.  It’s more affordable than ever and you get to live in it and that sounds pretty good to me.

About Tim Freund

Tim Freund has been a licensed real estate agent/broker since 1990. He spent 14 years as a new home sales rep, ran his own boutique resale brokerage for 5 years and is currently a Senior Estates Director for Dilbeck Real Living/Christie's International Estates in Westlake Village, Ca. Tim is a Certified Residential Specialist (CRS), an Accredited Buyer's Representative (ABR), a Corporate Mobilty Specialist (CMS) and a Senior Real Estate Specialist (SRES). Tim has successfully negotiated a loan modification for a client and is a professional short sale negotiator. Tim has been married 25 years, has 2 children and has been a resident of the Conejo Valley since 1991.
This entry was posted in Economics, Real Estate and tagged , , , , , , , , . Bookmark the permalink.

5 Responses to Some Things Are Certain In Life

  1. Carrie Rice says:

    Is that the truth or what??? Great article!!!!!

  2. Ray Hayes says:

    Thanks, Tim….for your wonderful perspective. It’s tough, sometimes, to keep everything in it’s proper place!

    Ray Hayes

  3. Mary Margaret Rolf says:

    If only people would listen. It would would make our jobs easier. Right!!! Thanks, you are SO right.

  4. Mary Margaret Rolf says:

    If only people would listen. It would make our jobs easier. Right!!! Thank, you are SO right.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s