Sentimental Investing

With 24 hour news cycles and instant dissemination of information financial markets seem to be responsive to sentiment now more than ever.  The market action last week blamed on Chinese economic conditions caused people to lose tons of money based on what some consider unnecessary panic. See Ben Stein’s take on it – Don’t Blame China.

This type of sentiment applies to owning Real Estate too.  Many people understandably have strong sentiment about owning a home. It is for many the single most important and largest investment of their lifetime.  People attach sentimental value to their homes. On any given weekend Home Depot is flush with people striving to improve their homes.  Understandably people make memories in their homes. However, one thing people are bad at is knowing when to sell and make money off their homes!  The key is to understand the market sentiment, not be blinded by your own.  With any investment there is risk, but being informed about the Real Estate market can mitigate that risk and pay off big.  Knowing when to buy and sell can produce substantial yields, enough to create a new form of sentiment!

Single Family Homes Outlook

There is actually a confidence index that gauges sentiment based on a survey sent to 50,000 Real Estate Practitioners.  According to these surveys confidence is up in many areas around the country and is very strong here in Florida. Confidence Index Report. So what does that mean for the potential home buyer?  If you have the money or can get a loan you need to take advantage of the current sentiment and buy Real Estate. If you have a low debt to income ratio and good credit you can easily find out if you prequalify for a loan.  Once you have an idea of what price house you can afford find a Realtor who will help you find a house that meets your goals. Remember while you are looking for your next house that  “Florida’s home prices increased…from $58 per square foot in 2004 to $120 in 2015.” Home Prices MSN  Even with the bubble burst the average price per square foot in Florida has doubled!

One final bit of food for thought,  why not use your leverage to buy a house as an investment.  Rental returns in Duval, Clay and St Johns Country are above average compared to the rest of the nation.  You could be looking at a 13% average return on investment with a rental in Duval County.  Bandwagon riding is allowed when investing, this bandwagon is called Buying Real Estate, good seat are still available!

Email me at with your real estate goals.  Let me help you find the perfect sentimental investment!




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