Loctation, Location, Location!

I have noticed different people have different strategies for home ownership. There is the strategy of buy and rundown (Type 1), there is buy and sell (Type 2), and finally buy and keep (Type 3). I am simplifing things here, but most can be lumped into these categories.
So with that in mind, and concidering the number one rule of realestate is “location, loctation, location”, why not always go with type 3 (buy and keep). Why do people choose to implement the other types? I don’t know.

So I come at it like this, for Type 1 situations, why not put money back into your house each year. The dollar amount that you save by not moving in property tax money can keep you house up. There is just no need to run your house down!

Moving on to Type 2, if you concider the number one rule of realestate again, simply buy a house that you cant afford in the right neighborhood. I think most people underestimate what they can and can’t afford, Leave that to the banks. You might have to cut out extranious expenses the first couple of years, but average 3% cost of living raises will soon make your unaffordable house affordable and now you are all set.

I am actually building to something here…

I often get asked about moving again or people laugh when I state that I am done moving, I’ll die in this house. I am dead serious! I bought in the perfect neighborhood and I am reinvesting in my house each year. To move, well I would just be paying higher property tax in a neighborhood that is par or below.