It’s Your Year!
“Happy New Year! I was just calling to see what your real estate goals are for 2026 and how I can help.”
That’s what you’ll hear me say when I call you in the coming months. You’ve been warned… because it’s coming! But since I’m asking you, it seems apropos to share my wife and I’s own real estate goals for the year.
We’ve declared it THE YEAR for real estate goals. Here they are:
Renovate. When we bought our primary residence in 2021, we knew what we had signed up for: a big renovation project. But when our realtor alerted us that it was on the market we didn’t hesitate for a moment, because it’s in our top choice of neighborhoods and is situated on a waterfront. Literally, a dream come true!
Sweat Equity at Work!
Naturally because it was 2021, we secured an artificially low interest rate (under 3%, oh my!). We have no regrets about taking on a big project house and we have done a great deal to add value to it; full kitchen renovation, hardwood floors throughout the main level, painted the full exterior and improved the landscaping, new water heater, and much more. Plenty of loose ends remain and, oh yeah. We need a new garage. As in, bring in the wrecking ball and start over. It’s not up for discussion. I’m putting it in words so that it happens, THIS YEAR! We are building a new garage. If you need me in July, I’ll probably be knee deep in construction debris.
Refinance. Shortly after the move we finished up a profitable flip house project and decided we needed to celebrate with a vacation to South Haven, Michigan, a seaside community that has held a special spot in my heart since childhood. We had casually discussed scheduling a couple showings while up there, just to satiate our curiosity and explore the possibilities of a purchase. I am admittedly a believer in serendipity, so when the house across the street from where we were staying went on the market that week, we requested a tour. It seemed like a good house for the price with a lot of upside. We leapt. Once it was decided, there was no turning back; never mind that interest rates had crept up in 2023 to decades- level highs. Add to that the fact that it’s a second home, so base rates are not what a bank will give you, and we found ourselves signing for over 8%.
Closing Day
For the record, we have ZERO REGRET! I mention that because I talk to lots of people who bemoan the rates now relative to pandemic times. We have two years of equity, appreciation, and most importantly, incredible memories because of our decision to buy when we did. Still 8.125% is high. It was always understood that we would refinance when we could. I’m coming up on two years of self-employment, the duration most lenders want for non W-2 borrowers. Rates have come down significantly and so it’s a no brainer to refinance our Michigan mortgage. There will be closing costs and origination fees, yes. Still totally worth doing. But first…
Reduce The Principal. We bought the house up here (I’m sitting at The Yellow Cherry Cottage as I type) with the intent of renovating and getting into the AirBnB game. The short term rental market up here has proven tougher than we expected and has nudged us to reconsider our goals. Not long ago I heard it said on a real estate podcast that you can buy property for cash flow (rental) or appreciation (resale), but if you try to do both, you won’t do either very well. It’s advice that resonated and from our experience so far, seems to hold water. Our goal now has shifted to aggressively paying down the principal so that we can own the house outright in a few years and not have to worry about interest rates or bookings at all. In truth, we might not ever sell it, because we love it so much! Either way, it will accrue value over the coming decades, either for our benefit or that of our kids.
So there you have it. I’d like to help you with your real estate goals, too. I will be publishing a monthly blog post about topics in renovation, an endeavor that I love and recommend to anyone who will listen; reach out if you’d like renovation advice, especially about which projects are most likely to add value to your home. If you need to refinance a home or leverage your home’s value in ways such as a Home Equity Line of Credit, I’d love to make an introduction with a trusted lender. And naturally, if you are looking to buy or sell this year, or know someone who is, please call me at (812)552- 9013.It is my wish to be the first person you think of when it comes to professional, trustworthy, and service- oriented Realtors.
Let’s start planning for sunsets!
It is my steadfast belief that real estate offers more and better ways to grow your money than any other approach out there. Let’s get started… it’s going to be a great year!