What Gilligan's Island Taught Me about Real Estate - Part Four
If you read the other three parts of this series, you'll know that one of my favorite shows when I was growing up was Gilligan's Island. And how the show can be a great teacher for real estate!
"The Producer" episode of Gilligan's Island is hands down my favorite episode. Hollywood producer Harold Hecuba lands on the island for some rest and solitude. The castaways convince him to return to civilization by staging a musical production of Hamlet.
The scene that stuck with me is where the Skipper (as Polonius) sings to Mary Ann (as Laertes) the song, "Neither a Borrower Nor a Lender Be."
(Go ahead, click on the video! It'll bring back fond memories, or create some new ones!)
So what does this have to do with real estate? Well, it's sound advice for so much of your financial life - home buying included! Take a look at the lyrics:
Neither a borrower, nor a lender be
Do not forget, stay out of debt
Think twice, and take this good advice from me
Guard that old solvency!
There's just one other thing
You ought to do
To thyne own self be true!
All too often I see people that truly want to become homeowners not be able to realize their dreams because the have either over used or mismanaged their credit.
While it is unlikely for all but the very lucky to buy a home without creating debt, a home mortgage can be what's know as "good debt." Mortgage debt is good debt. You're borrowing money, but you're getting a tax advantage and can write off interest on an asset that's appreciating over time. Plus, you get to live there.
Bad debt can be credit card debt, or when your unsecured debt exceeds 20% of your annual income.
In over your head? You most probably didn't get there overnight, and won't work your way out of it that quickly, either. But don't ignore the issue! Give your Realtor a call. Working with him or her along side of a qualified mortgage professional can give you a good idea of where you stand today, and where you need to be in order to buy a home.
Sometimes it takes the assistance of a local non-profit Consumer Credit Counseling Service to get you back on the straight and narrow. The National Foundation for Credit Counseling is a great place to start to look for a local counselor.
So, keep on enjoying re-runs of Gilligan's Island, and keep managing your debt smartly!
Missed Part One of What Gilligan's Island Taught Me about Real Estate? Click on the link!
Missed Part Two of What Gilligan's Island Taught Me about Real Estate? Click on the link!
Missed Part Three of What Gilligan's Island Taught Me about Real Estate? Click on the link!
Thinking of selling your home? Give Richard Strahm of RE/MAX Realty Group a call at 215-853-26924. He can give you lots of helpful tips on how to prepare your home for sale, and get it sold!
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415 North Broad Street
Lansdale, PA 19446
Direct: (215) 853-2624
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