Your Survival Guy had the pleasure of playing in a member/guest golf outing recently. In between shots, my host and I were talking about residential real estate prices. Both of us have kids in their twenties, and the focus was more about how their generation deals with affordability. Which got us thinking: How did we afford it? Good question.
When you start thinking about what may be perhaps one of your most valuable assets, getting in the game matters, and it’s a leap of faith. When we found our first home in Newport, Rhode Island, I remember my father (who was a realtor) couldn’t believe what it was going to cost—not the vote of confidence we were looking for, but we bit the bullet and bought it anyway.
During the financial crisis ten years later, it wasn’t like we were going to pack up the house and kids and move. We were not selling. We just kept making payments and living our lives as young parents.
Today, we live in a different house, but when I walk down memory lane and go to Zillow to see what that same house would go for today, it’s five times as much as what we paid back in 1998. In other words, if you wait too long for prices to come down, it may be a long wait before you’re a homeowner.
What’s even more important is the financial discipline you’re forced to learn at a young age. Getting into the game, doing the work, makes for some long days. But looking back, I’m happy we got into the game and made (not hoped) the numbers work.
Action Line: When you have your mortgage payments under control, let me know if you need help with your savings. You got this. Email me at ejsmith@yoursurvivalguy.com.
