**editorial article found on followtk.com
In early 2023, we decided it was time to move somewhere new. We found a place and made the move. In a discussion on what to do with the house we were leaving, we decided we would rent it out. After a couple of weeks and numerous inquiries to rent, we saw the market rates in our area skyrocket so we pivoted and decided it might be time to sell and use the cash for the next home and maybe a few big ticket items we’d been eyeing.
The housing market was not kind. Buyers were being forced to adjust their search because what they really wanted was hundreds of thousands over their budget. A mix of high expectations with lower budgets. We were left in a place of champagne taste buyers on a very nice craft-beer budget. That might be a bit harsh but it also showed us a lot. The house wasn’t the problem, the price wasn’t the problem, buyer expectations and reality were too far apart and agents didn’t seem to know how to deal with that.
One thing that surprised me the most was the lack of area knowledge by the agents that were showing the house. Choose your agent wisely, this stuff matters! The location was top notch. The home was simple, updated, expanded, and really cool, clean style. The agents seemed to love the house, which told us they weren’t clear on what their buyers were wanting.
Side step this discussion to the economy. The economy is questionable. What will happen when the US converts to digital currency? What will happen to our cash? What is one thing that is better than cash in this situation? Our answer…assets.
We have this house in an area that will only get better. Why are we selling it? Shouldn’t we hold on to assets and possibly acquire more? Yes, yes we should. Plus, there are tax benefits by keeping it as a rental.
Pivot again. We decided it would be best to rent the house and hold on to our asset for while longer.
We posted it for rent and the rush of inquiries came. We found all of the buyers that like the area but aren’t buying for whatever reason (commitment issue, interest rates, etc). We found the people that would love the home and location and pay a premium rent to be there.
We were considering the financial changes that are happening in the US and how it could impact us and our finances, we decided to keep assets and acquire more to protect our dollar. Is this smart? Does that make sense? Is this a huge gamble?
Why are more people not buying right now? Are we thinking about this all wrong? Why are buyers riding the fence? Is it due to interest rates being higher? Are they hoping for a recession to buy in? Do they think the dollars they have in their account will still be there and just as valuable when they have to convert it to digital currency? Will all of this even matter?
We made our decision based on many factors and what made sense to us. We don’t know what will happen but we know the area. We believe it will keep going up and we will be able to borrow against it if we need to but, for now, we will still have an asset. When you own an asset or possess a particular skill you can barter and trade without funds. This I plan to do very well. On to buy the next asset with my cash that is still worth something…for now.