Ladies and gentlemen, tech enthusiasts, and fellow budget warriors gather 'round for an epic cage match of minds between two of the tech industry's titans! On one side, we have the social media mogul Mark Zuckerberg, the brain behind Facebook and Threads, and on the other, the visionary entrepreneur Elon Musk, known for Tesla and X (formerly Twitter). But wait, before the tech gladiators clash, let's have some fun and put them aside for a moment.
In the red corner, we have a shiny new car, gleaming with potential and excitement. In the blue corner a beautiful new home, offering comfort and stability. It's the ultimate showdown: House vs. Car! Who will reign victorious?
We all know that new cars suffer a 10% drop in value the moment you drive them off the lot. Imagine that, poof! A $45,646 car becomes a $41,081 car within seconds! But hey, cars are loyal friends, sticking around for an average of eight years, according to zebra.com. Unfortunately, owning them comes at a cost – a whopping $10,728 per year or $894 per month, according to Forbes. And if you're in Louisiana, you're feeling the pinch, as it's the third most expensive state to own a car in, trailing only behind New York and Florida. Yowza!
Now, let's take a look at homes, the mighty contenders in this budget cage match. Despite market volatility and concerns about interest rates, the average home sale in New Orleans saw a resilient 1.2% increase this year, reaching new heights in value. In fact, homes have seen a significant jump in price over the past eight years, from $152 per square foot to $273 per square foot in August of this year. Owning a home has its advantages – you can build equity over time, and it can provide a sense of stability and pride.
On one side, we have the car, a tempting choice that whispers "freedom" and "adventure." On the other side, the house beckons with promises of long-term investments and a place to call your own. It's a tough decision, but do you smell what this real estate post is cookin?
The house emerges as the true winner when we look at the numbers.
Consider this: A $40,000 car will be worth just $16,000 after five years, while a $30,000 car will plummet to $12,000. Meanwhile, that $350,000 house is steadily increasing in value. At a modest 3% increase a year (2-4% is expected in New Orleans), that $350,000 house will be worth $405,746 in five years. That's a more than $55,000 gain.
Finish him...
For the final smackdown, the home also has a few sneak attacks up its sleeve.
I coulda been a contender - Most home buyers have forgotten - or fail to realize - that a home can be purchased with as little as a 3.5% down payment, which, on a $350,000 home, is just a little over $12,000. Wait, $12,000, that's what your $30,000 car would be worth by year five.
Never on the ropes - Many sellers are willing to cover closing costs in today's market, making it even more accessible. How many car dealerships are doing the same?
Beat em' to the punch - Increasing interest rates are causing many home buyers to panic and freeze. They're hoping rates will come down. While they do, you can act as the homes around them continue to increase in value.
Float like a butterfly.
Every 0.5% rate increase costs an average home buyer in New Orleans an extra $100 each month. That's $800 extra in payments so far this year, sure. But meanwhile, that home that could have been purchased in January for $350,000 rose 1.2% to $354,200. Yep, the home buyers in January made $2,400 already this year while others sat in wait.
So there you have it, folks! The bell rings, and the winner is clear. In the cage match of House vs. Car, the home emerges victorious on all fronts.
It comes out swinging with a smart investment, stability, and potential for growth, making it the champion of our budget battle. But it's real KO moment has to be slow and steady appreciation while its competitor simply runs outta gas.
Sting like a bee.
If you're looking for your dream home in the vibrant city of New Orleans, fear not, we're in your corner! Afraid to get started? No biggie, to quote Rocky, "If I can change and you can change, everybody can change."
Reach out, and let's start finding the perfect home for you. Remember, a house isn't just a place to live; it's a solid investment in your future. And when all else fails to motivate you in your search, remember it's not whether you get knocked down; it's whether you get back up!
Voted Neighborhood Favorite by Nextdoor, Team Cool Murphy is a top-producing, licensed real estate team based in New Orleans, brokered by Cool Murphy, LLC.
Celebrated for her next-level creative approach to real estate, Elisa Cool Murphy is an award-winning, top-performing agent in New Orleans and the founder and leader of Cool Murphy, LLC.
Contact Her -
email: cool@coolmurphy.com
Facebook: @homeinneworleans
IG: @coolmurphynola
YouTube: @coolmurphynola
phone: 504-321-3194
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