There’s a show that airs on HGTV titled, “The Property
Brothers.” On this show two brothers, one a realtor the other a contractor,
help families purchase a fixer-upper and transform it into their dream home.
The reason the families usually end up with something that needs remodeling is
because their expectations are much bigger than their pockets.
Last night I watched an episode where the couple had a budget
of $680,000. They found a house in their “ideal community,” but it was in need
on major repair and had a list price of $760,000. Of course the realtor was skeptical
of having them choose this house, as it was almost $100,000 over budget, not
yet including a budget for the renovations. While deciding between that house
and another one, he said to them, “I understand that you like this house, but I
really want you to think about your finances. I don’t want you to end up house
rich and pocket poor.” In the end the couple chose the more expensive house.
They purchased it for $750,000 and added another $125,000 in renovations. This
brought their total to $875,000, a cool $195,000 over their original budget.
They said they had the extra money that was needed; they just had to “switch
around some assets and dip into their rainy day fund.” I hope they were being
honest with themselves and not just looking at the superficial value of living
in a certain community.
My message to you this morning is – “House Rich and Pocket
Poor.”
We’ve all done it at some time or another, sacrificed
something we needed for something we wanted. It may not have been as
extravagant as this couple mentioned above, but we’ve been in their shoes.
Maybe we brought lunch from home for a week, in order to purchase an outfit for
a special occasion; or bought a particular car to match that of a friend,
knowing it really wasn’t in our budget. “Not me,” you’re saying. Oh, you know
people like that, but you don’t do that. Ok, I got you. What about this then? What
about your character, your personality?
Have you ever sacrificed who you were in order to “fit in” or
be accepted? Compromised your standards to fit into that “ideal community,”
only to fall flat on your face and without a rainy day fund? On the outside you
make everything look good and up-to-date, but behind the sheetrock are faulty
knob and tube wiring and leaky pipes. So much money has been spent beautifying
the fake outer appearance that the real person withers away inside. You are “house
rich and pocket poor.”
While owning a house is a wonderful accomplishment, it’s not
that great if you end up in foreclosure within a year. Buy what you can truly
afford and be who you really are, you will be happier in the end. After all,
what good is the caviar if you can’t afford to break the seal?