Real Estate Thoughts

Thinking About Selling Your Home When Real Estate Sales Pick Up?

It may be a good idea to start the process now, before AI takes most of the jobs that would allow a large group of people, earning enough money to qualify, to Buy Your Home!

If your House is worth $500,000 or MORE, I encourage you to pay special attention to my logic for advising you to strongly consider Selling Your Home Sooner, Rather Than Later!

We keep hearing about the growth of AI lately, and ALL the exciting things it will bring to our lives, however, it’s my opinion that not enough focus is on what will happen to American Jobs & Wages, which allowed Americans to afford buying homes over $500,000.

Even with Mortgage Rates elevated at the moment, how those rates have negatively impacted the amount of Homes Bought & Sold in America the past few years, and when Mortgage Rates start coming down, AI will have experienced more time to grow and allow corporations to reduce employees for this new AI technology.

I have no doubt AI will be a tremendous help for society, especially in Health Care, Research & Science, however, it will also reduce Millions of American Jobs.  Currently, CEOs of publicly traded companies are announcing how AI productivity is far superior than human productivity, which is much better for their company, and their shareholders..

Currently, There is Nothing Showing Us This Trend Will Slow or Reverse Any Time Soon!

If you remember back from 2004-2007, Interest-Only Mortgage Loans & No Doc Loans allowed people to Buy homes which may have been a little more than they wanted to pay.  However, they were able to afford bigger ticket homes by the loan types available at that time, allowing Lower More Affordable Monthly Payments on Higher Priced Homes!

In order to comfortably afford a $500,000 home, your monthly costs would generally be around $4,500, including; Principal & Interest, Mortgage Insurance, HOA fees, Property Taxes, Home Owners Insurance, School Costs, etc.

If you remain responsible with Income to Debt Ratios, you would need an annual income around $185,000 to $200,000, assuming responsible 401k Contributions, Health Insurance Premiums, Life Insurance Premiums, Childcare Costs, Savings Account Contributions, Car Insurance, and other Survival & Necessary Monthly Expenses.

As AI grows, corporations downsizing, even if AI creates NEW JOBS, as people say it will, which I don’t agree with, those JOBS will NOT pay $185,000 to $200,000 per year.

If I am correct, there is going to be FAR FEWER Americans that will earn enough money to Afford a $500,000+ Home, leaving MILLIONS of Americans with tremendous DOWNSIDE when their Home Value Declines, thus, their NET WORTH DECLINES!

I am trying to spread the word NOW, to help Millions of Americans avoid being caught watching their Home Value Dramatically Come Down in Price, their Net Worth Dramatically Decline & their Feelings of Happiness & Security Vanish!

If you would like to talk about your specific situation, please contact James, and he will find time to discuss your situation in detail.

James Chartered Asset Manager CAM®, Chartered Financial Manager ChFM®, Chartered Portfolio Manager CPM®, Chartered Wealth Manager CWM® designations were earned through Global Academy of Finance and Management or GAFM®.

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All opinions expressed by James R. Wigen on this website are solely his opinions and do not reflect the opinions of IFP Advisors, LLC, dba Independent Financial Partners, (IFP).  Investment Advice offered through IFP Advisors, LLC, dba Independent Financial Partners (IFP), a Registered Investment Adviser. IFP and Independent Financial Management, LLC (IFM), are separate entities.