Invest in Real Estate: Expert Home Buying Advice from Realtor Brian Frere

Article by Debra Laizure

Originally published in the May 2024 issue of Tulsa City Lifestyle

Real estate has always been considered a solid investment, and for good reason. Not only does it provide a place to call home, but it serves as a vehicle for long-term financial growth. With recent fluctuations in the stock market and uncertainty in other investment options, many are turning to real estate as a safe, reliable way to build wealth.

An April 2023?Fortune?magazine article explains homeowners and renters are the haves and have-nots of the wealth gap era. From their credit scores to retirement savings to overall net worth, homeowners are ahead of renters on almost every financial metric. As a result, they are more than twice as likely as renters to report feeling financially secure.

Brian Frere with the Brian Frere Real Estate Team at Keller Williams Preferred agrees. He says that most truly wealthy people list real estate as the #1 or #2 largest asset class in their investment portfolio. Over time, real estate has consistently increased in value. While there have been a few instances where values have temporarily decreased, the market has always bounced back, proving to be a resilient and stable investment.

Frere says, “Home ownership is one of the best inflation hedges you can ever implement into your life.”

One?of the key benefits of buying a home is the ability to secure principal and interest in today’s dollars. While other costs such as food, clothing, and entertainment continue to rise, homeowners are at an advantage because they have locked in the cost of their largest monthly expense.

Unfortunately, Frere says there is a housing shortage in our local area as well as across the United States.?In January 2014,?there were 488 single-family?homes sold?in Tulsa County?with a $165,373 average sales price. Fast forward to January 2024, and the number of homes sold was?nearly the same?at?461 homes sold, but the average sales price nearly doubled to $317,201.

However, the alarming difference lies in the fact that in?January?2014, there were?3,148?homes available for buyers to choose from, while?January 2024 offered?only 1,342.?Our demand is basically the same, but our supply is a fraction of what it once was.

The Federal Reserve reports the net worth of a homeowner is about 40 times greater than that of a renter. So why are so many younger people opting to rent rather than buy a home?

There is a common misconception among millennials that renting is a more affordable option for achieving their desired lifestyle. With so much conflicting information online and on social media, Frere says it actually creates an incredible opportunity for millennials to invest in their future by purchasing investment properties in desirable locations. They can enjoy the lifestyle they desire, but also generate passive income through renting their properties.

“It’s time for this generation to break free from the renting myth and take advantage of the opportunity real estate ownership offers. You have to pay?to live somewhere, you might as well pay yourself,” says Frere.

More importantly, owning real estate can change the outcome of generational wealth.

He says, “After practicing real estate for more than 20 years,?it is shocking to me to learn that the only asset many people of retirement age have is the equity in their home. For some, it is the only thing they have besides social security.”

So, what is going to happen to those who never buy a home? Sadly, it may create a financial burden on their families. Without the equity that comes with homeownership, many seniors may struggle to afford the care they need for assisted living or nursing home care. This is why owning a home is not just a symbol of stability, but also a blessing that?can allow them to live the rest of their life comfortably.

The real estate market has been a rollercoaster ride over the past 18 months, with interest rates rising and multiple home offers causing frustration for many home buyers. As a result, many potential buyers have put their dreams of homeownership on hold and have chosen to rent instead. Regardless, with stable interest rates and leases coming to an end, pent-up demand will be unleashed on the Tulsa real estate market.

With the help of a trusted real estate agent, buyers and sellers can navigate through the challenges and opportunities the real estate market brings and make the best financial decisions for both.

“This is an exciting time for the Tulsa area real estate market?and buyers should act quickly to take advantage of the current conditions. Don't let this opportunity pass you by,” says Frere.

The Brian Frere Real Estate Team is located at 4745 E 91st St, Suite 100 in Tulsa?OK?74137. For more information visit briansellstulsa.com or contact Brian?at 918-298-6900.