Some people dream of having a beautiful partner, while others crave fame so intense they can’t enjoy a moment of peace. However, the allure of real estate might just top them all, given how much time we spend at home. This makes the fear of missing out on real estate, or real estate FOMO, particularly tough to shake off.
Buying real estate isn’t easy, which only fuels this FOMO. Anyone can purchase stocks, even just fractional shares, but real estate? That’s a different ballgame. The challenge of acquiring it only makes us want it more, intensifying the FOMO beyond what we feel for stocks, vacations, or even perfect abs.
For those looking to invest in real estate without the usual hassles, consider easier, less risky options like real estate ETFs or investing a small amount in private real estate funds. For example, with just $10, you can start investing in funds like those offered by Fundrise, which manages over $3.5 billion in mainly residential and industrial properties in the Sunbelt region.
When mortgage rates spiked in 2022, I was on the hunt for new real estate in San Francisco. I wasn’t expecting bargains, but I was hopeful. Back in mid-2020, I settled for a home that was nicer than our previous one, but not my dream home. If I had known what the market would do, I might have stretched my budget further.
As my family grew, the need for a nicer home became more pressing. I couldn’t bear the thought of lengthy renovations with kids in tow, so I opted for a move-in-ready house. This search isn’t just about finding a place to live—it’s deeply personal and a bit therapeutic, reflecting on missed opportunities and how to deal with persistent real estate FOMO.
Since becoming a father in 2017, the importance of living in a great home has skyrocketed. I now live for my dependents too, not just myself. The best financial strategy seems to be buying a home while the kids are still there—this spreads the cost over more time and, frankly, more heartbeats.
While searching online, I found an amazing house with a large lot, much bigger than the average in San Francisco. My kids loved it immediately, which made me want to buy it, despite the high cost and our recent purchase in 2020. As a parent, you want your kids to be happy and safe, and this house seemed perfect for creating lifelong memories.
However, buying the most expensive house on the block seemed risky with a potentially weakening market. I had to balance my desire for a better lifestyle with the need to be a prudent investor. I even considered making a deal directly with the listing agent to save on commissions and make our offer more competitive.
Yet, securing the funds proved difficult. I didn’t want to liquidate stocks during a market downturn and face hefty taxes. This experience taught me a valuable lesson: always anticipate your desires and ensure you have enough liquidity to act on them without complicating your financial stability.
Looking back, I realize that managing real estate FOMO is crucial. It’s about appreciating what you have and understanding that bigger isn’t always better. To really combat the FOMO, focus on making your current home more enjoyable. Small upgrades like new fixtures, a fresh coat of paint, or revamped landscaping can make a significant difference.
In the end, understanding and accepting the emotional aspect of home buying, and focusing on current happiness rather than potential upgrades, is key. This doesn’t just apply to real estate, but to all areas where FOMO can creep in, reminding us to cherish what we have, rather than always looking for the next best thing.
