Want to know a great way to save money in real estate? Hello, this is Gary Edelbrock, and my friend, Lee Amble, has a simple, but surprising suggestion.
One Great Real Estate Tip To Make You Money: Simply Buy Less And Make More!
Written By: Lee Amble, Realtor, Consultant
Just a short look back at our parents and grandparents, before the last generation or two, when some lost their way and fell into the greedy mode of 'I need it, I want it and I will get it.' Our parents and grandparents or at least most of them owned one or two homes and didn't buy a different home every 5-7 years like many have in the recent past. They saved their money, worked hard and tried to leave something for their heirs; not all bad. We can do the same if we retrofit our mind to some of the common sense of the past generations.
This will be a very short and simple article. It will be easy and will contain only one great money-making idea. Many people will be able to do this, others may not, but we can all work toward this type of easy program. Age, income, and job transfers will make it hard for some, but give it a try!
Buy Less – Make More:
Buy your first home right. Make sure it can be improved and/or you can add on when needed. We don't need mansions to live in and be happy. One of my grandparents had 14 children in a two story home of about 2000 sq. ft. It was built in the 1920's and is still being happily used. It, of course, has had improvements made to it.
How To Save A Lot And Retire With More Income:
Instead of buying 5 to 10 homes in a lifetime, let's buy only 2 or 3. The savings of not buying the other 5 to 7 homes should be reinvested into small single family homes for rental and retirement. It would be nice to have 2 or 3 rentals paid for by retirement to supplement your retirement.
I am sure most of us would appreciate 2 or 3 thousand dollars or more a month extra when we retire. More would be even nicer! Some of the above numbers may be more or less, but you get the idea!
Money Saved From Buying Less:
Let's look at various closing costs and fees. For our example, we will use a price of a $200,000 to $250,000 home sale.
- Title company fees.
- Realtor fees.
- Moving costs.
- Lender costs.
- Utility costs and charges.
- Home inspectors.
- Home repair costs when preparing to sell.
- Time from work
As you see, there are many, many costs; all you have to do is look at your last buyer and seller costs. You may have had both of them. Make sure you include your moving costs, etc. I may have forgotten some. The above could easily run 15% to 20% more. That, as you see, if you move 5 to 7 fewer times, it could save you a whole lot of money. You should use your own numbers as these are just my ideas.
The money saved may be enough for a down payment on 3 or 4 single family rentals, with the tenants paying for the balance over time.
If you like less maintenance than a single family home, consider townhomes or condos. There are many alternatives. When you want, you may have a nice rental income or sell them and put your money into a worry free, safe investment and enjoy retirement even more.
These are only my ideas, but I feel like they should be considered by many. Even if you are not in a position to do this, pass along these ideas to your children and grandchildren and to others who may profit from it. Keep it simple! Buy less and retire with more!
"Remember Experience Isn't Expensive, It's Priceless! Selling A Home Is Easy; Doing It Right Is The Key!"
Lee Amble, Realtor/Consultant
NATIONAL REALTY OF PRESCOTT
Lee's cell: 928 533-4455
Jan's cell: 928 533-4488