Investing in real estate can serve different purposes: capital appreciation, rental income, or enhancing your lifestyle. Personally, I prioritize lifestyle. I love living in and enjoying my home, and if it increases in value, that’s a bonus. Over the past two decades, real estate has brought in about $150,000 in annual investment income for me.
Capital appreciation, while nice, is just the cherry on top. It boosts your net worth and is a benefit for short-term investors, but I believe in holding real estate indefinitely.
The real charm of real estate for me lies in its everyday utility. I don’t just buy properties for income or potential price increases; I invest in a better lifestyle. Whether it’s the joy of the location, the views, or the amenities, the satisfaction and memories I gain from a property are what matter most. If it appreciates over time, great, but that’s not my primary aim.
Let’s talk about what makes real estate desirable. Features like an open gourmet kitchen, a walk-in closet, a luxury master bathroom, and tranquility are high on buyers’ lists, along with a spectacular view or extra land.
After retiring from corporate life, I’ve come to value home amenities more since I spend a lot of time there. The evolution of my real estate preferences reflects this shift. I started with a park-view condo that offered a serene escape without the upkeep of a large yard. Eventually, I desired more freedom and privacy, leading me to purchase a single-family home.
However, after a few years without a view, I found myself yearning for one, even contemplating major renovations to get a glimpse of the Golden Gate Bridge from my rooftop. The complexities of building in San Francisco dissuaded me, so I sought solace by cycling to scenic spots instead.
As my needs and desires evolved, so did my living situation. The quest for a new environment or perhaps a new city became appealing, especially since I no longer needed to commute. This flexibility in choosing where to live without commuting constraints led me to discover a poorly marketed gem in San Francisco—a fixer-upper with a breathtaking view that was undervalued due to bad marketing.
This experience highlighted the subjective nature of value in real estate. Not everyone cares about a view, preferring perhaps more space or a different location. But for those who do value a view, finding a property like mine was a steal, especially in a market where everyone is chasing homes in more popular neighborhoods.
Looking ahead, it’s wise to invest in areas poised for economic growth. Consider proximity to expanding public transport or upcoming commercial developments, which can boost property demand and value. And even if the price appreciation I hope for doesn’t materialize, the property still enhances my lifestyle, which is priceless.
Ultimately, real estate should not just be about financial gains. Whether it’s the sunset views or the neighborhood, if you love where you live, it’s likely others will too. This philosophy not only makes for a sound investment but enriches your daily life, making each property not just a financial decision but a home.
