If you're a young and upstart couple with the world in front of you, you have a different set of priorities than other people. You're probably just looking to get student loans paid off, get things paid for, and not make any outrageous expenses where applicable. Therefore, a lot of things start going off the wayside. One of those elements that may slip to the wayside is real estate. It shouldn't be a surprise that an Austin realty company would be talking about this, but we do genuinely care. As young people, why should you care about an investment in Austin real estate?
If you read our article a couple weeks back, we talked about the worst real estate advice we'd ever heard: don't invest. This article directly applies to what we're talking about today. Like we've said before, real estate is an investment. Since we're talking about it from a younger perspective, there is a difference here that we might not have covered before.
Think of Austin real estate like a piggy bank.
First, real estate is a big purchase (hundreds of thousands of dollars is to a house as six dollars is to a piggy bank.). It's certainly not for the faint of heart, but, if you're serious about financial security in your future, then keep reading. Every so often, you make regular contributions to your piggy bank. A penny here, a nickel there, and so on. Over time, that piggy bank becomes more and more full. Finally, you're attempting to jam coins in your piggy bank, but you can't. It's filled to the top. Over the course of many years, you empty your piggy bank and go cash in all of this money that you had allotted. Now you can go play.
Similarly, your home is a piggy bank. You pay it off over installments, yes, but you also make improvements within. A new countertop here, a floor replacement there, and so on. These small improvements accumulate over time. Finally, when your home is paid off, your children (if you have them) have moved away, and it's time to look at your life again. Suddenly, that big house isn't as necessary, so you try to "cash it in," or sell it. Over time, if you've maintained your home, the value has risen to far above your initial investment. Suddenly, you not only have your initial investment back, but you have more than what you paid for it!
It's difficult to visualize this when you're so young. It really is. Twenty five years is a long way away, so why plan for something that seems unfathomably unreachable? The earlier you get started, and the bigger risk you take at the beginning, the more it will pay off in the end. We don't have to put you in a mansion, but if you buy a reasonably priced home, pay it off, and keep it nice, then you will have a reward ready for you down the road. And at the end of the day, this isn't a task you have to undertake alone! When it comes to Austin real estate, we're here to help.