Flat Market-What to do and What not to do

 1. Take care of your own house. How are you holding title? Are there any easements you might need to be aware of or clean up? In the horrible off chance that something happens to you, you want to make sure that the right people are inheriting your home/funds with as smooth a transition as possible. The other situation to prepare for is estate taxes. Two recent scenarios were one for which a guy ended up in a fatal bike accident and his home ended up being sold via probate. Another situation was a man who owned a lot of real estate also suddenly ended passed. Because his family wasn't prepared, they need to sell a large portion of his real estate in order to pay his estate taxes. Another property had an odd easement that the owner wasn't aware of until it came time to sell the property. Make sure your real estate is prepared to be sold by doing a little bit of cleaning house in order to make sure the transaction goes as smoothly as you can. 

2. Sitting on cash? Make calculated investments including income property. Unemployment is at a record low. The Fed is looking to increase both interest rates and unemployment in order to decrease inflation. However, being in Orange County, aka a desirable neighborhood, we always have some semblance of demand. We are also living in a world where the minimum wage has gone up significantly. Investment property can provide good cash flow in a time where cash flow is a bit illusive. 

3. In general, times of high inflation and or correction bring about the goals for being conservative with spending and working to increase income as best as possible. During high inflation, that's easier said than done. However, when your expenses go up in correlation with your income, it ends up being a wash. The worst scenario is to be in a position where your expenses go up, but your income does not. This is a market that requires discipline and as I said before, it's easier said than done. 

Now the don'ts

1. Don't let small problems become bigger problems. For example, if you have a leaky faucet, make sure you take care of it now. What you don't want to have happen is for that leaky faucet to become a much bigger problem that causes you both headaches and bigger expenses down the road. This also includes changing filters, looking at the age of your water heater, etc. 

2. Over the past couple of years, investing in the stock market felt like free money. It can still be fairly reasonable especially as everyone is finally talking about this correction despite the fact that it's been going on for nearly a year now. Be cautious. There are several companies that are talking about drastically cutting back on their work force to account for our inflationary market. 

3. This is not the time to check out or take a vacation. It can be disheartening and feel like there's nothing to do. When covid first hit, I know I certainly felt that way. However, the market changes and never stops moving and so should you. Everyone who checked out when covid first hit had to work harder to get the inertia to get moving again.