Own with a lifelong investment in mind.

Financial Decision - Dream Home or Investment Home or somewhere in between?

At Selah Realty, we focus on reaching your long-term goals.

Many people are focused on looking good in front of others and end up purchasing depreciating assets like high-end cars while not securing assets that generate and retain value. They end up being poor with much debt while investor-minded people like you get wealthy. You are in good hands seeking to purchase a home with Selah Realty.

When you are purchasing your home, you need to make a decision on whether you want your dream home now or later.

If you are young and do not yet have a family, you probably ought to sacrifice pleasure of owning a spacious home now and rather purchase one or more investment homes. If you are married and have children and are ready to settle in a specific location, you may want to get the home that you really want (or build one yourself). Selah Realty’s Dream Home Advisors can help you in both extremes and anywhere in the middle.

Here’s the difference between the extremes:

Investment homes:

This purchase is NOT made with your emotions. You buy purely based on a calculation of positive cash flow where possible rental income exceeds potential expenses. Your thinking also includes ease of finding people that would like to live in that area. Investment homes may be in less than perfect condition enabling you to buy cheap and make repairs along the way.

Investment homes are generally 2-4 family homes (beyond 4 family is considered commercial and there is more complexity — but we can still help you there), so that you can stay in one of the units as you take care of tenants and any maintenance. You will learn most about Real Estate investment this way while building maximum wealth.

You have two exit strategies:

1. Just hold the property. If you have calculated correctly, you are making money each month AND you are paying down the property building up equity. As long as you own this house, your net worth will increase over time.

2. Since you have purchased the property relatively cheap, once the property appreciates, you can sell for capital gain and use the lump of money for your next venture. (Want to use your proceeds to obtain a higher cash flow and more secure property? Learn more about commercial real estate investment from Sciturus Real Investment Group.)

Dream home:

This purchase is made purely on emotion, based on your situation in life. If you have secured academic tenure or are running a successful business where you are fairly certain that you will not move AND wish to settle in one location, then you should ensure you get everything you want in your home, even if you have to pay more. Your goal is settle and do not require an exit strategy, assuming you have more than sufficient funds to take care of this house (if you are still uncertain with your finances, or are moving due to uncertainty of employment, we do not recommend this extreme since life is too volatile).

Somewhere in between:

This should be for majority of our clients. You want to secure a house that is both beautiful and functional enough, rentable, and appreciating. For these houses, you want to be picky enough to get a good deal while meeting most of your life’s demands; but not too picky that you do not purchase a home for a long time. Just like any employment, you gain wealth by being mobile and making good purchases along the way. Selah Realty’s Dream Home Advisors are well-versed in these matters and can give you great guidance. Trust them, and you will grow wealthy over time while living in a nice home that you own.

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