The 200,000 mile machine

It’s not every day that you see a car with 200,000 miles. As a matter of fact, most people would cringe at the thought of driving a vehicle with such high mileage. But I know the owner of this one, and he wears it like a badge of honor! He makes the point that many years ago he stopped paying for this car, and it, in return, started paying him, through lower insurance rates, and by the mere fact that the car was paid off.

As the dust is beginning to settle on what will be undoubtedly be looked back upon as one of the most tumultuous times in real estate history, many may find themselves contemplating what decisions, actions, or pro active measures they would have taken, had they known then, that the unprecedented rise in real estate prices would eventually come to a screeching halt. While the 200,000 mile machine is just a car, this owner’s example and experience can really be applied to the ownership of real estate. He started with a quality product, maintained it meticulously, and probably most important; when the inevitable urge came to trade-in or trade-up, subsequently creating more debt, he simply resisted. Now it might seem odd for a Realtor to be championing the idea of buying a property, and holding onto it for an extended period of time. After all, we real estate professionals derive our income from the buying and selling of others. Yet a conservative posture such as this is just what the doctor ordered in today’s real estate environment. This is not to say that the case is not overwhelmingly strong in favor of buying real estate today; inventory is plentiful, prices are attractive, and interest rates are at historical lows. In short, the next time you’re thinking about buying a home, think about the 200,000 mile machine…

Psst………….I love my car!