Inside the Mind of a Homebuyer and a Look on the Bright Side
Despite dealing with the aftermath of a global pandemic, an unpredictable stock market, and record-breaking inflation, life in 2022 may not be as bad as you think it is. 150 years ago, the richest people in America didn’t have easy access to basic commodities like air conditioning and ice, not to mention apps that deliver food and streaming services playing everything you can imagine.
Rising interest rates, higher mortgage payments, and a low inventory can make it feel like a crazy time to be buying a house right now. But real estate has more value than just a percentage point and, like all major decisions in life, there are several factors at play when deciding to buy a home.
This week, Doug and Greg discuss why it’s easier to stay optimistic than you might think, the best way to manage client expectations regardless of the times we’re living in, and why rising interest rates don’t necessarily throw a wrench in your real estate plans.
Key Takeaways
- [00:59] - Why there’s a lot to be optimistic about and the key to managing expectations in the stock market and in life.
- [10:18] - How the rise of interest rates and mortgage payments will impact real estate.
- [23:33] - Who Doug and Greg bet on at the Masters.
Quotes
[09:27] - “The last thing that I would want to do is plan on some historical rate of return that makes the numbers look fabulous and then way undershoot that, for one reason or another. I think it’s really good from a psychological standpoint to maintain those reasonable expectations that returns are going to be more muted in the future and if you beat them then that’s great.” ~ Greg Stokes
[10:06] - “You could end up in the same exact place, but if you have the expectations of higher outcomes at the outset then you’re disappointed versus ecstatic.” ~ Doug Stokes
[12:40] - “I think we’re in a situation where theoretically we could have a rise in mortgage rates like we’re experiencing in the first half of 2022, coinciding with either a steady price of homes or even a continued increase of the value of homes, which would be extremely interesting.” ~ Doug Stokes
Links
- Surprise, Shock, and Uncertainty
- Ten Global Trends Every Smart Person Should Know: And Many Others You Will Find Interesting
- Growth Without Goals
- Can Home Prices and Interest Rates Soar at the Same Time?
- The increase in 30-year fixed mortgage rates
- Caesars Sportsbook
- Tiger Woods
- Jon Rahm
- Sergio Garcia
- Bryson DeChambeau
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Disclosure
The information in this podcast is educational and general in nature and does not take into consideration the listener’s personal circumstances. Therefore, it is not intended to be a substitute for specific, individualized financial, legal, or tax advice. To determine which strategies or investments may be suitable for you, consult the appropriate qualified professional prior to making a final decision.
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