Moving Down Will Become a Trend That is Here to Stay for Cedar Rapids Real Estate

Scenario A:  Couple moves into a house and both have full time jobs working 40+ hours a week.  After a year or two, one of the partners quits job and becomes an independent contractor earning money on a commission only basis.  Some months are good, and some are non existent as far as bringing income to the family.

Scenario B:  Couple move into a house that they can comfortably afford.  Then come the little punkin' heads.  Two kids later and three years down the road, the couple's expenses are such that they cannot afford to save money anymore for college, savings, retirement, etc...

Scenario C:  Couple moves into house and lives comfortably for five years.  Then husband loses his job.  They collect unemployment but it's not enough.  Then they take out a home equity loan and exhaust all equity they have in the house.  Then husband gets a job that requires the family to relocate.  They go to sell their house but can't afford a Realtor because they have no equity in their house.

These are not at all uncommon scenarios that are playing out on the real estate landscape these days.  Sellers who qualify for a maximum of a 150K home are moving into a 150K home, not realizing that they might not have money at the end of the month for savings, emergency funds, retirement, etc. 

Moving down is a trend that is here to stay in Cedar Rapids real estate.   Today's children want everything in a home that it took their parents 30 years to achieve.  They want the biggest house, new cars, fifteen credit cards (all close to being maxed out), etc.  Today's consumers must live according to their means, which means below their income level.  In order to save money, have emergency funds, retirement, you need to live below your income level and spend less than you make.  So what if you live in a house with only one bathroom.  My family did it with six kids for thirty years.  So what if you have three kids and only two bedrooms for them.  Bunk beds work great!  So what if you only have a one stall garage and you have two cars. Make do until you can afford to build a two stall garage. 

Moving down is smart thinking for your families future.  Give me a call today to see how we can achieve this for your family!  Have a wonderful week!

Christopher Smith

Traditions Real Estate

www.christophersmithrealtor.com

christopher.smith.realtor@gmail.com

319-329-5988

Licensed Realtor in the state of IOWA

"Success in real estate at the SERVICE of others"

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