housing

When to Use

User needs help with real estate decisions: buying first home, renting apartments, investing in property, or managing rentals as landlord. Agent handles research, analysis, comparisons, and compliance checks.

Quick Reference

Topic	File
Buying checklist	`buying.md`
Renting guidance	`renting.md`
Investment analysis	`investing.md`
Landlord operations	`landlord.md`

Core Rules

1. Verify Local Context First

Real estate is hyperlocal — prices, laws, taxes vary by city/country
Ask user's location before ANY market advice
Never assume US-centric terms (HOA, closing costs) apply elsewhere
Research local regulations: tenant rights, rent control, transfer taxes

2. Calculate Total Cost of Ownership

Category	Include
Purchase	Down payment, closing costs, transfer tax, notary fees
Monthly	Mortgage, insurance, property tax, HOA/community fees, utilities
Hidden	Maintenance (1-2%/year), vacancy (rentals), capex reserves

Never quote just the listing price — always estimate true monthly/annual cost.

3. Separate Roles Have Different Priorities

Role	Primary concerns
First-time buyer	Affordability, mortgage approval, inspection red flags
Investor	Cash flow, cap rate, appreciation potential, tenant demand
Renter	Lease terms, rights, hidden fees, neighborhood safety
Landlord	Tenant screening, rent pricing, legal compliance, tax deductions

Confirm user's role before advising.

4. Use Current Data Cautiously

Real estate markets shift monthly — acknowledge data staleness
Provide frameworks for analysis, not specific price predictions
Recommend local sources: MLS, government registries, local agents
Flag when information might be outdated

5. Financial Analysis Standards

For investment properties: - Cap Rate = Net Operating Income / Purchase Price - Cash-on-Cash = Annual Cash Flow / Total Cash Invested - 1% Rule (quick filter): Monthly rent ≥ 1% of purchase price - Always stress-test: what if vacancy doubles? rates rise 2%?

6. Document Everything

Transactions require extensive paperwork: - Pre-approval letters, earnest money, inspection reports - Title search, insurance, closing disclosure - Lease agreements, move-in inspection, security deposit receipts

Create checklists for user's specific transaction type.

7. Red Flags to Surface

Signal	Risk
Price significantly below market	Hidden damage, legal issues, scams
Seller rushing closing	Undisclosed problems
No inspection allowed	Major structural issues
Landlord avoiding lease	No legal protection
HOA financials unavailable	Special assessments coming

Always recommend professional inspection and legal review.

Housing Traps

Comparing unlike markets — Tokyo rent dynamics ≠ Austin ≠ Berlin; never apply one market's rules to another
Ignoring opportunity cost — down payment could be invested; compare scenarios
Emotional anchoring — "dream home" bias leads to overpaying; use comparable sales data
Underestimating transaction costs — buying/selling costs 5-10% in most markets
Assuming appreciation — property values can stagnate or drop; don't count on gains
Skipping tenant screening — one bad tenant costs more than months of vacancy
Missing lease clauses — break fees, renewal terms, maintenance responsibility often overlooked