Wants versus Needs: A Never Ending Battle

By Randy Dyck

I bought a new house recently and have found myself going from furniture store to furniture store looking for just the right couch, rug, and accessories to make it our HOME. It has been 15 years since the last time we moved or bought any new furniture, and there are so may amazing options out there, from a Custom live edge table to beautiful dining seats. To my amazement, I am shocked at how in-expensive furniture has become over the last 15 years. I couldn’t believe some of the prices I was seeing. Even for specialist things like an antique bookcase, the prices were so affordable.

Some friends recommended me to visit web portals like Oak Furniture House for affordable oak wood furniture. Oak furniture, I am told by them, offers the best shelf-life when compared to other hardwood-based furnishings and fitments. I might consider this option because it seems quite affordable.

Isn’t the world becoming more affordable? I believe it is! Remember what a top of the line TV cost 15-20 years ago? ow about a microwave? The first microwave my parents bought back in 1980 was $1000! Adjusted for increased quality, the new value of a dollar and the same new microwave price has now dropped by more than 90%!

The entire world has, in essence, become one big Walmart. Technology, manufacturing techniques, shipping, and sourcing have become so much better, making TV’s, microwaves, and furniture significantly cheaper in today’s dollars.

So if everything is so much cheaper, and we are earning more money than ever, why are so many people struggling to make ends meet? Yes, we are earning more today than ever, even if household incomes haven’t gone up. When you think about it, the income we earn today really does go much further than it did in 2000. However, the extra income or perceived extra income gets eaten up in our desire for lifestyle. We want it all and are constantly bombarded by marketing campaigns that make it mandatory to have it all. You need it now! And you need only the best! So instead of one TV in our homes, we have 3 or more. Instead of buying a pair of Levi 501 jeans for $24.99, we buy the latest designer jean for $300 that ironically we are told to never wash. We pick up a venti latte on the way to work. Or, want a new tablet to sync with our laptop, smart phone, and TV of course. The list of WANTS rather than NEEDS goes on and on. The reality is that incomes have stayed stagnant over the past 15-20 years and I don?t believe we will see significant increases in household incomes; however, it will be our NEEDS that will continue to become cheaper and cheaper over time. The challenge for us will be – can we resist the WANTS in order to make sure we have our NEEDS?

If we can agree that consumable goods are cheaper, how about housing? Does cheap or affordable housing exist? We know that housing certainly is a need and not a want. Or is it? Do we get caught up in our wants and make the needs of a home un-affordable? I have helped all ages of buyers 19-85 years of age buy and sell homes over the last 23 years. We have to consider the other costs surrounding housing as well as the cost of home insurance. If you’re interested in learning more about home insurance learn more today through various reviews. This can massively affect how affordable some homes can be because of larger insurance premiums.

Recently I was struck by a comment by a retired senior that I was helping buy a condo. She said ?Everything that I want to buy I can?t afford?. The condos we viewed were approximately 30 years old, 2 bedrooms, and 2 baths, with average fit and finishing, priced $85,000 – $125,000 in Abbotsford. Sounds cheap and affordable, doesn’t it. Another buyer, this time a first-time buyer in his early 20?s made a similar comment but he was a bit more direct. He said ?I want a new place with granite counters, stainless steel appliances, rain head shower, hardwood, and heated tile floors?. I reflected on these two buyers comments and came to the conclusion that today homes are cheaper and more affordable than ever. However, once again it comes back to lifestyle. We want it all and it isn?t a matter of just addressing our housing needs but rather our personal wants. If we can?t afford our wants we default to saying it is too expensive and we can?t afford it, even though there are many great affordable options that meet our housing needs.

Since I started selling real estate in 1992, I have never seen a time that has been more affordable to purchase real estate in the Fraser Valley. The ultra-low interest rates are making for exceptional value in the re-sale market and creating crazy cheap monthly mortgage payments. Yes, it isn?t the latest and greatest but it is cheap and it fulfills your housing needs!

Today certainly is a great time to buy your first home, or your right-size home, or your next investment property. Call me today if you are interested in buying a cheap property that fits all your needs and maybe even a want or two.

Randy Dyck has been a top producing realtor in the Fraser Valley since 1992. He and the Eximus Real Estate Team have sold over 3000 properties in the past twenty years. Randy and the six agents of the Eximus Team serve investors in Chilliwack, Abbotsford, Mission, Maple Ridge, Langley, and Surrey. Randy personally invests in Multi-family, Commercial, and Development properties. Contact him at randy@eximus.com

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