Starter homes are obsolete as owners stay put amid high costs

Investment Analysis Clubs Macro Economic Trends and Risks
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{{ “You need to look at this home and think, ‘Can I live here for five to seven years comfortably?’ ” DeMars said. “Buying a home is exciting and scary. People get caught up in the excitement without looking at the future possibilities.” }}

I always liked the standard real estate agent advice that “It’s a good deal if the home appreciation has paid back your transaction costs on the purchase of the next one”. (e.g., the cost of selling your current home is probably 8% to 12% of it’s market value, and the cost of purchasing the new one with a mortgage is probably 3% to 5%.)

Good deal for who?

intercst

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Ha! When I buy a home, I look at it and think - “Can I live here forever?”

So far I’ve only purchased one home in my life, and I’m in my 60s already. And we are now contemplating buying a second home elsewhere, and I am of the same mindset - “Can I live there forever?” So, at this age, one thing that disqualifies any home is if it has any stairs at all, even one step at the entrance will disqualify it.

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I ask that as well, but more important for me is “can I find a reliable means, so far overlooked by potential buyers, to significantly increase its value.”

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