News September 22, 2019

Stages and Ages

I spent this past weekend with my sons in New York City. We had a blast! One of them lives in an area that is slowly (for now) undergoing change. Knowing what’s coming down the line, I urged him to follow the market, sock money away, and buy ASAP for an investment—even if it’s a studio—as soon as possible. The ROI can potentially be explosive from my perspective. But then, we agents are always on the hunt.

Of course only a few years out of college, and while he has a great job, he also has student loans, expenses, a girlfriend, is considering changing jobs, and insecure that he can put enough away for a down payment, even if in today’s world there are opportunities to make simply a 5% down payment.

Most of us have made some kind of real estate blunder, whether it’s the coulda/shouldas of property acquisition, or I should have sold when. But, in addition to not seizing the opportunity, there are other mistakes or lost opportunities we fall into along the way depending on our age and stage in life.

As a 20 Something

In addition to believing they just can’t pull it off, many young buyers get ARM’s, adjustable rate mortgages that offer a lower introductory interest rate. Their belief is that they will earn more money someday, so if and when the rate increases, they will be able to afford the new monthly payment. But ARMs can have their downsides. Instead, younger buyers may want to consider a lower down payment loan – maybe through an FHA loan, MassHousing loan, Freddie MAC, Fannie MAE, or a low down payment conventional loan – to reduce the initial out-of-pocket expense while locking in a sustainable interest rate, which as we know, currently still remains at a historic low.

Into Your 30s

When seeking to buy a property at this age, kids or future children may weighs on many minds. Even without considering a family addition, life changes can happen frequently in the 30s, such as job changes or salary increases or a job relocation. Previous ownership might signal refinancing. What made sense then may not make sense now. What needs to be taken into consideration at this point?

Life is Stable? Your 40’s into 50’s

Buyers in their 40’s and 50’s may have more money saved, which can lead to overestimating or over-spending their budget. Conversely, you might stress about college tuition or aging parents. You might tap into your home equity or realize your home is taking away more of their savings than they had realized. Budgets can be especially challenging at this age.

60’s and Then – Vacation home, Retirement and Beyond

Once you get into your 60’s, you’re thinking about what comes next. Sell, sell, sell and use the equity. But maybe the kids have moved back in…You’ve just refinanced to pay for the vacation home, tuition, repairs or renovation.

Rightsizing becomes a recurring dream, but where? Sometimes it costs as much to move into the city or a new condo as your existing home! Many take a vacation, fall in love, and buy impetuously. Whether relocating or simply moving across town, this is an expensive and stressful proposition. Moving is hard. Uprooting your life and starting over in a new place – while all of the people you love in your old town get to go on living the life you were used to – is hard not to feel like you’ve just closed the door on a very important part of who you are as a person.

Should you need unbiased advice or recommendations of lenders who offer diverse programs, please feel free to give me a call, text, or send an email. It would be my pleasure to help out in any way needed.

If you are considering buying or selling or would like more information about your market, please contact me. And if you, too, are interested in exploring off market homes or those coming soon, I would welcome the opportunity to work together.