As a former registered investment advisor and university faculty, my background in finance makes me the low-risk, high return choice for buyers. Investing starts with making good decisions, and your real estate investments are a huge set of decisions.
Even obvious decisions are more complicated than you may think.
For example, what do you think this expression means to most people: “location, location, location”? Most people will say it is your neighborhood or bad house on a good street. Yes, this is true.
Future Value vs Present Value
The mistake is that most buyers focus on the price they pay. That is a bad idea. Do you focus on the price of a stock today without understanding the future value of the company? No, as investors we want to maximize the return so we MUST shift our focus from the purchase price, to the purchase price relative to the selling price. That should be the case, even if you never intend to sell.
A Broader Perspective
Many of my clients are considering retirement and some move into less wealthy states. In ten years, when they would like to refinance for whatever reason, they will be surprised to see how little wealth they themselves have created. Perform a search for listings in California, Washington, and Idaho. Search for comparable listings, in comparable neighborhoods, and find one in each State that are almost identical at the same price point $550k.
Now, ask yourself if you could get a terrific house in one of the three states, which one will appreciate the most and which the least? The goal of course, is to find a place to live with long-term sustainable growth.