First lesson in real estate: own your first property. – Annoymous
It’s one of the oldest adages I remember hearing: ‘put your money where your mouth is’. Essentially saying that if you are going to talk something up or try to sell it, people want to know that you are buying into everything you are saying/selling. It’s easy to say something, but until you have first hand experience, its hard for some to trust you.
Similarly, this quote seems to be along those lines in saying that first hand experience with the house hunting phase, purchasing phase and home ownership phase will be your best teacher. Obviously at RealAgents.ca we seek to prepare you the best we can and even help you find the best local real estate agent, but there is no substitution for learning on your feet – and that includes the good surprises and the bad.
I have encountered would be house flippers in the past and was surprised to discover that they hadn’t owned their own property first. For most, this is a big warning sign, but as we recently shared with you in our post (click image below to read it or watch our video), Jumping into Home Flipping? Ensure You Land Well, it is important to start with lower risk investments, even if it means flipping land. However, if you have your heart set on house flipping and you haven’t owned a home before, I’d recommend purchasing a home that just needs to be ‘sugar coated’.
What I mean by this is that it just needs cosmetic upgrades (i.e. cleaned up, painted, new doors, electrical sockets, etc.) and not major changes like moving walls or fixing a foundation. This way you can move in, learn about home ownership, and not have the pressure of carrying costs (mortgage, taxes, electricity bills) as this will be your primary residence. In other words, you won’t have the pressure of carrying two properties. Then when you are ready, it can be listed and sold and hopefully for a profit.
All in all, its important not to rush into the world of real estate too quickly. There is much to learn and missteps can not only cost you financially, but legally and even with relationships in some cases as well. That isn’t said to scare you, but more as a reminder to be prudent and wise! Regardless of where you are coming from, we recommend hiring the best local agent there is, regardless if you use our help or not. We want you to succeed and to enjoy home ownership.
What do you think?