If you have been paying attention at all to the finance world, you know that it is important to have a diversified portfolio.
You do not want to have all of your eggs in one basket – such as having a majority of your money invested into a single stock.
Well, I believe that I have a well-diversified portfolio through a variety of mutual funds. The issue is that all of these investments are impacted by global/world/regional events that may or may not have anything to do with the mutual funds I own.
This is why I own a house. It is an investment that helps my financial portfolio become more diversified.
I have owned quite a few homes, but the home I now own is the first older home I have purchased. This house was in some dire need of structural improvements AND decorative updates.
However, I bought this house at a discount because of all of the issues with it. It was NOT move-in ready.
Here is a list of problems that it has/had:
- Dog pee all over the carpets
- Dog damage from climbing on window sills, digging up the yard
- Rotten floor
- Leaking roof – several spots
- Sagging roof
- Old appliances
- Wood paneling with horrible wallpaper all over it
- Leak damage on the walls/ceilings
Now, I am the son of a home builder. I know a little bit about working on houses. I will tell you that this is my first attempt at updating a house myself. As a result of this project, I have developed a short tip list for you should you consider doing this.
- If you have no clue about updating houses – do NOT do it unless you have a pile of green portraits of Ben Franklin that you want to donate to others.
- Have a contigency fund for the problems you will discover as you fix other known problems
- Get help when you get in over your head
- Don't move in to the house until you have fixed the structural issues. It is so much easier to complete a major project when you are not living there!
- Develop a budget for the projects and HOLD TO IT! Be realistic on estimated costs!
- Cry when you need to. It lets some of the frustration and anger out.
In the end, you will have a nice house for a good price and have some good ole sweat equity built up!