New Year, New Goals
Tim Ford | Friday Jan. 1st, 2021
Happy New Year! We all know that 2020 was a crazy year in so many ways. As we move into the New Year, this is a great time to reflect on wins and losses and make a plan to have a great 2021. Many people make resolutions this time of year, and what better time to make some goals around Real Estate.
Is 2021 the year to add an income property to your portfolio? Make a plan. Start by talking with a lender to see what you would need for a down payment and to see if your credit score needs shoring up. Consider making a monthly budget of all income and expenses to see where the holes are and find a way to start saving each pay period towards that down payment.
I’ve met a lot of people in their retirement years that have their primary residence paid off and are trying to figure out a way to live off that equity. It’s not easy because they still need someplace to live. If one can have a second property and let the tenants pay down the mortgage for them, it’s much easier to find a way to live off that equity.
Perhaps you’re renting and are finding the prices in Gallatin Valley to be an obstacle. Consider trying to find a 3-bedroom condo or townhouse and get a few roommates to help with the mortgage. Although real estate prices have climbed considerably over the past year, rents have too. If history is any indicator, as long as real estate prices continue to climb, rents likely will as well. By locking in a 30-year mortgage, one can lock in that monthly payment instead of waiting to see where rents go.
For those who have been in their home for a long time and have wanted to sell but feel overwhelmed by the thought of trying to move or de-clutter, break it down into manageable pieces. One can start with one room so a feeling of accomplishment can spur them on to the next. There are also professional services that can help with decluttering and moving.
It’s best to take the big overall plan or goal and try to break that plan down into small, manageable steps. What’s the next most important step? Just focus on that next important step, rather than focusing on the entire plan. By taking small steps and achieving small wins, one can feel a sense of forward movement and accomplishment, rather than feeling overwhelmed by an unachievable task. The best way to eat an elephant is one bite at a time.
As usual, I have included data for the number of homes sold in Bozeman during the first 11 months of 2020. In addition to the 1,058 homes sold during this time period, another 135 homes are currently pending, or under contract, as of the date of writing this article. This compares to 105 sales pending this same time last year and 86 the year before.
The included data reflects sales of homes on less than and more than 1 acre in the greater Bozeman area, including Four Corners, Gallatin Gateway, Bridger Canyon, and Bozeman city limits. The data includes home sales reported through the local Big Sky Country MLS and does not include private party sales, Condominiums, or Townhouses.