Lessons in money investing and management from the King of Pop?! You can stop laughing. Neverland has been in and out of the press for being in various “possible” stages of foreclosure. . .I have to insert here that MOST lenders really just want to loan you the money and sit back and enjoy collecting a check each month from their “investment”. . .very rarely are they hot and bothered to repossess a home and try to resell it and recoup their money, often giving borrowers a few chances to bail themselves out. . .the current market in some major cities where home prices have dropped and default rates have risen, we see this happening, blame predatory lending, unfortunate but true, the “bubble” was in short created by playing with “funny money”, paying more for a property in a high-demand market than it was really worth with money the buyers didn’t really have, and now we have a mess on our hands. So, what can we learn from Michael Jackson?
Don’t get in over your head. Most folks these days understand the value of investing in real estate; the accumulation of equity as you own the home over the years, the interest payments being tax deductions, etc. . .but I have seen on many sad occasions folks who buy a lovely home. . .and have two car payments, a boat payment and maybe as the icing on the cake, a motorcycle payment. Live with in your means. I don’t know who will buy something like Neverland, I suppose its days as a private residence are over, I suspect some investor group will swoop in and eventually open it to the public. . .but easy to see that even one of the world’s richest men can get in over their head.
You should be able to afford not only your mortgage and other basic monthly expenses such as utilities, insurance, taxes, etc. You must be able to afford upkeep and maintenance on your home, be it simple lawn care, a fresh paint job every few years, a new roof when needed. . .I have some sellers expect to tack on the cost of a very much needed paint job or a new roof to replace a leaking one to the sales price, the home is SUPPOSED to have a roof “performing the function as intended” like everything else in the house. In short, I hate to sell a home to family that has a mortgage payment that will stretch them to their limits. . .I don’t want anyone to cry while writing their mortgage check and cursing my name. Investing in real estate is a wonderful experience as long as you know what you are getting into, ask questions, read up, double and triple check your budget and find a great agent to help you through the process. . .have I mentioned I’m available? 🙂