Saturday, September 22, 2012

What’s Your Hurry?

When you buy a new automobile you know better than to expect any sort of equity in that automobile. Heck, as soon as you drive it off the lot you’ve lost about $5,000.00.  Automobiles are a depreciating asset. But when you buy real estate you expect to have equity in it or at least you expect for that purchase to appreciate in a reasonable amount of time so you can build equity in it.  Up until now real estate investors did not have to wait very long before they saw their properties increase in value. That is one reason why the average investor bought and sold every five to seven years.  They could build equity and trade up. This is a new economy and a new real estate market.  It could be twice that long before you see reasonable appreciation in your real estate investment.  Of course there are exceptions like areas on the west coast of Florida and Arizona around Phoenix. That is where the fire sales were taking place.  Appreciation will be more rapid in these areas because the fires are going out due to inventories being significantly reduced. Do you really want your dream “second” home to be in one of these areas?

Actually, I am happy about this new real estate market because I think the purpose of a home is for family, not instant monetary gratification.  My opinion is directed specifically as it relates to this precious Island where lives are renewed and families are made whole and lifetime memories are made.  If you want to be here, the good news is you have time because as you can see prices are still adjusting and as is usually the case the market will cool down in about a month as we approach the end of the year. This is not a location of necessity for real estate investors; this is destination primarily for second homes. This is a unique location and the destination should be Joy and Happiness as well as a much simpler way of life.  There is an expression: Do what you love and the money will follow. On Martha’s Vineyard, buy what you love and the Joy will be in a collective family journey and a respite from your so-called normal life.  Why settle; haven’t you done enough of that in your life already?