Howard and Sandy wanted to purchase the vacant lot adjacent to their hill country home to provide additional privacy and space to enjoy activities with children and grandchildren. But, was it affordable for them? If so, what was the best way to make the purchase?
PartnersInWealth listened to their questions: “Can we afford to buy the land given the other priorities in our life?” “Should we wait to see if the price goes lower?” “If it makes sense to move forward, should we pay cash or finance the purchase?”
PartnersInWealth also asked probing questions: “Are both spouses on board with the idea?” “If not, what are the dissenting spouse’s concerns?” “Would it be harder to maintain a larger property as they grow older?” “If yes, how do they feel about that?” “Has the client considered if the lot would qualify for the homestead exemption and how that would affect their property taxes?” The firm also consulted with their accountant and realtor to gain their perspectives about the idea.
Finally, PartnersInWealth evaluated how Howard and Sandy’s life goals may be affected by purchasing the property. We assessed the tax effect of liquidating other investments to make the purchase, and considered the effect on the client’s investment portfolio of adding real estate. We also reviewed the couple’s risk tolerance and family dynamics. We then created financial calculations of the various alternatives before them.
Howard and Sandy ultimately moved forward with the purchase of the land. They are confident they made the best decision because they had the input of a knowledgeable, trustworthy and objective advisor who acted as a sounding board and fully understood their financial goals and needs.
Client Since: 2008