June 25, 2021 | Episode 11

Buying or Relocating in a Hot Real Estate Market

What to consider first (00:28)

  • Understanding the current real estate market and perspective on purchase prices, property taxes, and interest rates (1:45)
  • The effects of state and local taxes and value of a low-interest-rate environment (4:50)

Putting the Price of the House in Context (8:20)

  • Fighting the urge to compete, staying flexible, and remaining unemotional (9:45)
  • Looking at a house like a stock. short vs. long-term buying considerations (13:45)
  • Removing stress and the fear of missing out, not negotiating on non-negotiables (15:30)

Weighing out the Opportunity Cost (19:15)

  • When it’s worth overpaying, identifying what matters to you, and recognizing if a house is worth buying for your situation (21:00)
  • Understanding how inflation works, identifying differences amongst communities, and getting stuck on certain neighborhoods (26:45)
  • Relocating out of state vs. across town, having someone in your corner to help you sort through your decisions, not talking yourself out of the right opportunities (28:58)

The Role of Interest Rates (32:50)

  • Value of financing vs. using cash, understanding your sources of funds, and learning to utilize leverage (33:00)
  • Looking at your house as a piece on your balance sheet, debunking the debt conversation (39:45)

Alternatives to Traditional Financing (42:20)

  • Creating cash deals, breaking down securities lending, borrowing from first property to buy a second property (43:25)
  • Few buyers are using cash and not refinancing and seeking financial advice before making any decisions, and becoming attractive to sellers through non-traditional lending (45:48)