Uberblog

I was recently chatting on a discussion board on Zillow.com.  I was shocked to receive an onslaught of crude e-language from a number of very jaded “non-buyers”.  The fallout from this last real estate fiasco has left some real bitter folks out there. 

One of the worst effects of the last bursting “bubble”, in my opinion, is that it has caused many people to look at real estate buying and selling like they do day-trading.  Especially people under 30.  That is a real disservice, because real estate is not that kind of investment.  Historically, real estate is a patient, over-time kind of equity builder, not a quick in and out gain.  (Take a ride on the Real Estate Roller Coaster to get an idea)

Let me tell my own family’s real estate story as an example.  My parents bought a piece of property after my Dad retired from the Navy in 1971.  They paid $4000 cash for 2+ acres in Florida.  We lived in a mobile home while we built a house.  Later, they subdivided, built a new house and sold the old home for 70K. Later they sold the new house for 160K.  They bought a house in town for 65K, put 22K into it and sold it later for 165K.  With all that buying and selling, and some saving, they made several hundred K’s which are now my brother’s and my inheritance.  Pretty Cool.

Fast forward to 1989.  My husband and I bought our first home, a Condo in Damascus, MD.  It was what we could afford.  We sold it after 2 years, made 22K, a nice down-payment on a modest single-family.  We had to move out to the next county, Frederick County, to get something we could afford.

Immediately after moving in, we lost 15% of our value, then 20% after the next year.  (Remember the stagflation of the 90″s?) But, oh well, you have to have a place to live.  And the tax write-off is still an advantage.  We stayed there for 13 years, watched the market eventually come back, (I still maintain that it always will, its just a matter of time.)  We sold it and took out 90K.  Since moving to our present home, values have declined 10 to 15%, but by the time we’re ready to move again, they’ll be back up.  We’ll probably downscale to a townhouse, or maybe even a Condo again, the kids will be gone.  We’ll probably have a nice sum to put down and have a lower mortgage.  We might invest some of it. Pretty Cool again.

So, all this to say, real estate is a good investment, it should be part of everyone’s portfolio if they can possibly make it happen.  The problem with the experience of this decade is that it is not normal.  Something is wrong when values increase by 20% year over year.  As steep as the incline is, unfortunatlely that’s as precipitous as the fall off will be.  

One of the negatives: this decade has shaped many people’s view of the Real Estate industry, and we have some work to do to build back trust.  Like any industry, though, there are those few bad apples that stink up the place, but most people are good local business people who are part of the community and are there to stay.  Chris and I are here to stay and believe that we’re actually helping people make a wise investment for their family.

I’ve learned a lot as a result of my parents’ being savvy with real estate. Thanks Mom and Dad, I only want to be as smart as you!  Hopefully, our real estate equity will be my children’s inheritance. 

So, you see, I love selling real estate!  It’s something I believe in, how could I not?!

                   
                          The Highland Real Estate Group                      
   Chris & Karen Highland * Frederick County MD Real Estate Agents
                    Specializing in Frederick County Real Estate 
                                       301-831-9947
                                  Real Estate Teams, LLC
                                      isell4u2@msn.com 
                                    Pictures of Frederick