Yes, there's been trouble in real estate paradise, and no matter the causes, the dramatic results have been experienced across the country. Before assuming that housing is a risky investment, please understand that owning a home offers countless advantages over stocks and other securities.
First, home ownership lets you put in a little money and get the whole house. Money in stocks only buys a very small piece of the company.
You also benefit because the government "bribes" you into buying a home by offering scores of tax write-offs, like mortgage interest, property taxes, depreciation - you may even avoid capital gains taxes.
As homeowner, you're also the sole shareholder! YOU control what to buy and what to pay. YOU choose how to increase value through improvements. Try to exercise that kind of power at a company shareholders meeting of thousands!
Stocks incur risk because they may become worthless. That's extremely unlikely with your home. Even in the worst periods, homes retain most of their value. Fluctuations over a couple years eventually balance. What you haven't heard widely reported is that housing lost value in only ONE year out of the last thirty-five.
But the undeniable advantage of a home over a stock certificate? Quite simply, you can't live, dream, raise a family, and feel secure with only a piece of paper over your heads!
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