What does “value” mean anyway?
In a real estate market experiencing an extended period of expansion and appreciation, many people I run into look at the value of a house largely in light of appreciation potential. “How much money can I make on this deal, and over what period of time?”
That’s certainly a valid way to look at it, but not the only way. What goes up, can – and almost always does – come down. So, I always ask my buyers to look at it from another perspective as well. There is value in a house that goes beyond dollars and appreciation.
It’s about your life. And life doesn’t come free.
If you buy and sell your house with care, and you have good luck (always a part of the equation) you can make money on the deal. But if not, you haven’t really lost anything. You’ve had a place to live your life. And you’d have been paying for a place to live in the form of rent anyway.
So look at your next house – or your first, if that’s where you are on life’s path – as a place for life. If you love to garden, how’s the yard? If you love to cook, how’s the kitchen? If you love to eat out and party, how close is the eating and drinking scene? If you have, or want to have, a passel of kids, will there be places for them to sleep and play and run around making noise?
Look at the things that bring joy to your life. Does the house provide for these? If it does, and you can make the payments, buy the house.
Live in it, and make it a home.
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