We like to call it unreal estate
- Who starts this process?
- Real estate has become an anchor
- Most likely you have lost money
We like to call it unreal estate – not that it doesn’t exist, but that the issues associated with owning real estate are unreal. Once you own real estate you are now very visible in society. In fact, you can no longer hide. Sure, you could change your name, or appearance, but you are locked into a piece of property. Now, you have become a target for anyone who wants to find you, or make a claim on you because of that piece of property. This allows them to come after you to take your money and your property.
Who starts this process? The bank who lends you the money to buy the property. They get huge amounts of interest from you. You don’t have a 4 percent loan if you really look at it. Out of your $1,000 mortgage payment only about $100 of it goes toward paying it off. You have a 90 percent loan, not a 4 percent loan. It doesn’t get much better over the years because most people sell their property and buy another one about every 7 years. Now, the 90 percent loan starts all over again. This is the biggest drain on your money, but what about everyone else standing in line; the utility companies, the insurance companies, the maintenance companies, the security companies, the home owners associations, property taxes, the neighbors who now put demands on you and just about everyone you can think of who now knows you own real estate?
What about if you wanted to take another job in another state, could you give a 30 day notice and start a new job? Not if you own real estate you can’t. Now your real estate has become an anchor that you may or may not be able to sell, most likely not.
Most likely you have lost money, either on the property itself or from all the money you shoveled into it after you became a property owner. What about if you rented where you live. Could you then give a 30 day notice an take that wonderful new job? You sure could. So, we would tell you to swallow your “pride of ownership” and that owning real estate is not the American dream anymore. In fact, for millions it has become the American nightmare.
QUESTION: What should readers take away from this message today?
ANSWER: That you can never own real estate because it owns you.
QUESTION: Why is this information timely?
ANSWER: This information is timely because you are at a point when people need less stress in their life and owning real estate is one of the most stressful things you can do to yourself.
QUESTION: How can readers best apply this information to their lives right now?
ANSWER: By realizing that stuff will never make you happy, nor does all the stuff add any real value to your life.
COMMENTARY: What’s the opposite of owning real estate? It’s being mobile, having freedom, much less exposure to liability, and the ability to take advantage of opportunities as they arise. Unless you have a lifetime job in the same place, have a family to raise, live in a much less litigious society and your real estate continues to rise in value does it make any sense to own it anymore. Everything I just mentioned is an outdated model, which is why real estate is now unreal estate.