Your Primary Residence is Not an Investment
Feb. 25th 2016 - Agent - Ryan Stafford
As a real estate agent accustomed to working with clients who have families they want to keep protected as well as ambitious future aspirations, Ryan Stafford of PS Platinum has a history of helping people find the house they call home. As one of our most basic needs, you and your family need a place to live.
But there is a difference between a house and a home.
Ryan works with you to find a house to serve as your family’s foundation—a home that provides you with the quality of life you are aiming for at a price point that can still afford you reasonable payments.
But here’s the hard truth: your primary home is not an investment.
Yes, your primary residence is a valuable commodity, but the value of your home should not be counted when building your investment portfolio. Think of your home like a wedding ring—inherently valuable though not something you would ever want to sell. As a result, the current market value of your house can hardly be considered a liquid asset.
#1 Lesson Financial Planners and Agents Can Teach You
To help sort out your assets and ensure you remain on track for your financial future, Stafford partners with the experts at 20/20 Financial. Stafford believes this team approach to buying a home, building upon your current resources, and creating a custom-tailored plan for where you want to be in 5-15 years is essential to success.
The number one lesson your financial planner and real estate agent can teach you is that your primary residence is a liability, not an asset.
From an investment perspective, real estate is no different than any other investment piece. A financial investment is higher up on the pyramid of needs and wants—and necessarily more liquid (and risky) than a primary residence.
Your investment portfolio cannot exist without that one foundational piece: we all need a place to call home; not so with the portfolio.
Set Yourself Up for Success in Real Estate Investment
From Stafford’s perspective, he aims to set you up to where you want to be, both with your home and with your investment properties if that option is currently available to you. That way, if the housing market unexpectedly hits a bump in the road, are you are still happy and comfortable where you are, living a fulfilling life no matter the state of the market with a primary residence that can meet all your needs and desires.
Learn More About the Collaboration Between Real Estate and Finance
Stafford and the team of Cardiff financial advisers recently teamed up to explore the importance of a team approach to real estate and the role that team can play in the home buying or selling. Watch the PSP 20/20 Financial video.
Cardiff Real Estate and Financial Planning – Content Series
After you’ve watched the video above, check out the rest of the articles in the the content series created in collaboration with Steve and David at 20/20.