Welcome to "Ahead in the Count" presented by BIP Wealth. Our Baseball Division combines their collegiate and professional baseball playing experience with financial acumen to provide expertise in life on and off the field. We aim to give ballplayers and their families a better understanding about their unique lifestyle, the opportunities that come from playing this game, and insight into the complex financial world. This is "Ahead in the Count," hosted by Nolan Alexander, from BIP Wealth.
To contact the hosts, send an email to jhester@bipwealth.com, kschmidt@bipwealth.com, or cmurray@bipwealth.com.
Assessing Potential ROI:
The discussion kicks off with a focus on assessing the potential return on investment (ROI) in the current housing market. Kyle Schmidt and John Hester shed light on the dual perspectives of real estate – as an investment opportunity and as a primary residence. They emphasize the impact of fluctuating interest rates on profit margins and highlight the challenges posed by higher rates in today's market.
Current Challenges in Affordability:
One of the hot topics in the housing market is the issue of affordability. The hosts acknowledge the current challenges, citing low inventory as a significant factor driving up prices. They discuss the difficulty in predicting when houses will become more affordable for the majority and touch upon the impact of interest rates on this equation. Despite the uncertainty, they provide insights into the competitive rental market, offering a ray of hope for those currently renting.
Factors Influencing Investment Decisions:
John and Kyle delve into the key metrics and considerations that play a crucial role in making investment decisions. Whether it's evaluating location, convenience, or the potential for future family growth, these factors differ significantly for those looking to invest versus those seeking a primary residence. They stress the importance of understanding the distinction and making informed decisions based on individual priorities.
Peace of Mind and Real Estate:
A standout point in the conversation is the importance of peace of mind in real estate decisions. Whether it's managing an investment property or choosing a primary residence, the hosts highlight the intangible aspects that should not be overlooked. The emotional component of homeownership, especially for primary residences, goes beyond mere financial considerations.
Diversification for Risk Mitigation:
In a shifting economic climate, diversification is key to mitigating risks. Kyle and John introduce various ways to diversify a housing market portfolio, including Real Estate Investment Trusts (REITs) and private real estate investments. They emphasize the hands-off approach these options offer, allowing investors to participate in the real estate market without the day-to-day hassles.
