The Best Advice Ever. Think Before You Move.

The market goes up, the market goes down.  What does the volatile market conditions mean for you in the long run?

The bull market will end with a bear, and then the bull rise again.

8.5% Transaction Fees

It costs on average 8.5% for a seller in transactions costs, realtor fees, etc to dispose of a property.  If you buy and sell a home every year, 8.5% of the profits (if any) will go to transactions fees.  The SP500 has returned slightly more than this over the last few decades.

Don’t Move

Buy a property with the intent to stay there.  In other words, stay put.  That way you get to consume the property, not pay rent and get the benefits of the American dream of home ownership.  If you buy a property and expect to make a quick buck you will likely deceive yourself and find yourself in the red at the end of the day.

When in Doubt, Hold

Warren Buffet said, all things equal, when in doubt hold.  The same applies to real estate.  If you can afford your property, don’t think about trading up or buying a duplex so that you can live in one and rent out the other (unless you’re sure this is the right move).  For most people, staying still will save them money in frictional costs.