• Sort Blog:
  • All
  • Art
  • Blog
  • Business
  • Charles Dickens
  • Design
  • Dickens Christmas Fair
  • Events
  • Featured Listings
  • For Fun
  • Great Dickens Christmas Fair
  • Horn Toots
  • Market Conditions
  • Market News
  • Market Reports
  • Market Statistics
  • Market Trends
  • Music
  • news
  • Newsletter
  • Of Interest
  • Photography
  • Properties of Interest
  • Real Estate
  • San Francisco
  • SFRE Buzz
  • Sport
  • Uncategorized

Looking to Become a Millionaire?

DID YOU KNOW?  Warren Buffet who turned 89 this past weekend, made over 95% of his fortune after the age of 50 years.  95%!!! He only became a billionaire at the age of 56.  Just like that $50 million house that sold in 2 days with multiple bids over ask, we tend to only hear the exceptional stories of those who make their first billion before the age of 25 in the media. The reality is that the vast majority of fortunes are amassed over the age of 50. The average person becomes a millionaire closer to the age of 60, and women hit this milestone sooner than men, under 59 years of age!

What are a few things you could initiate today to help you accumulate more wealth by this time next year?

  1. Set up automatic savings.
  2. Put your money in a high-yield savings account. Most basic savings accounts pay a very low rate. An extra percent can add up.
  3. Increase your 401k contribution.
  4. Analyze your monthly expenses and set a new budget that cuts out any excess.
  5. Do some after-hours/outside-of-your-routine work for 1-2 hours a week or month for additional income set aside purely for savings.

How Strong is the Bay Area Market?

We’re topping it off with charts this week! For those of you who are just here for the graphs and data, I will not be offended if you leave off after you’ve digested the data below:

We’ve had a strong market for longer than normal this cycle. But San Francisco is always last in and first out when it comes to a slump. Forecasters say that the market should remain strong through 2020. In the meantime, the chart below indicates a slight dip in some Bay Area markets.

The good news in the next chart? While we sometimes fall harder, we come back stronger relative to the national market.

Five cents worth of advice:

  1. Don’t try to time the market. Wondering when we’ll peak or if we’re peaking will exhaust you. And you’ll never know the answer until the moment has come and gone. 
  2. Think of the home you buy as a place to live first and an investment second. There’s so much more to owning a place than the dollar payout at the end, like you get to paint the rooms any color you want, never worry about the rent going up and finally get a dog!
  3. Plan to stay at least seven years. Over my 30+ years of selling, I’ve always seen the market run in seven year cycles from peak-to-peak. I’m especially aware of this because I have a knack for buying at the top. We purchased our current home in 2009, just a few months before the market melt-down. There was some slippage in value after we closed, but today it’s worth 35% more than what we paid for it.