Tom Kelly: Re-entry into housing market requires vision
If it’s been a while since you’ve researched a new residence, you will probably be surprised at the cost and overwhelmed by the variety. The concept of a home has evolved from basic shelter to the most valuable piece of the average person’s investment portfolio.
Given the stock market has never been higher with experts calling for a correction, coupled with the unpredictability in the nation’s capital, older consumers are now more protective than ever when the subject becomes the roof over their heads. In many cases, their home not only has been their most reliable investment but also their most emotional and primary asset.
The best way to choose a community in which to purchase your next piece of real property is to begin with an assessment of you, your spouse and your immediate family. Putting too much emphasis on “buying where our good friends bought” or on one wonderful amenity, such as a gorgeous golf course, can come back to haunt.
For example, your lifelong basketball buddy may be an entirely different person after he has blown out a knee and has no intention of making the transition to joining you on early morning bicycle rides. The golf club that you planned on being the center of your social calendar could suddenly become too expensive, or too crowded, for your tastes. Friends and venues are terrific yet they should not be at the top of the chart. You need to know what you want before you can determine where to look.
The best process to begin the selection of your new home and its geographic location involves creating the most detailed image you can.
Picture yourself in your new home and all of its surroundings. If, at the end of the process, you can engage all your senses – touch, sight, smell, taste and hearing – in envisioning this place, it will seem more real to you and it will motivate you to proceed with confidence. As you develop the vision, remember that the controlling factor is not whether it exists, but rather whether you can fully envision it. Creating that kind of vision involves the following three key steps:
1. Begin by setting a time frame. When will you want to reach the goal of your next home? Do you want to wait until full retirement to take up residence, or will you want to use it, at least part-time, well in advance of that? Answering these questions will not only help you envision your dream location, but also set the timetable for the financing process that will enable you to reach your dream.
2. Move a little deeper into the process by looking at the things you enjoy now in your leisure time. These will make up the bulk of your activity in the dream location, so the location ought to accommodate them. If you enjoy reading, cultural plays and lectures, then a larger community will be best. Access to golf, fishing, sailing or hiking will dictate a more specific resort community. Don’t worry about whether your tastes will change, because you will be revisiting the master picture often. You might want to add and subtract activities to account for new interests and limitations. Going through this step will enable you to define the type of location that will best suit your needs.
3. Next, focus in on the type of house you want. How much room do you think you will need? If you are planning on sharing the home with family and friends, more bedrooms and more living space are needed than if you plan to be there with only your immediate household. How much time do you want to spend dealing with the care and maintenance of the property? If you choose a more developed area, would you rather garden or have the time to play golf?
Focusing on these decisions will help you choose the type of house that best suits your vision.