Several times today I saw REALTORS® writing that a Home is not an investment. This kind of statement denies of civilized mankind's history!
A Home is an investment! The only major investment most people will ever make. Like any investment there is risk involved. But, despite recent history a Home is probably your safest investment, because it comes with a tenant that normally has your best interest at heart.
The confusion may result from the fact that, if you can afford it, Homes should be selected with the heart. If you can't afford your dream home then almost everyone can still have a Home of their own by buying it like any other investment, using your head.
No matter what the market does if you make all your payments you will someday own the property free and clear. While you're making those payments you get to live in your
Home, probably for less, often allot less than rent on a comparable property. Probably for less than rent on a substantially lessor property. Unless you the home owner do something very foolish your Home payments will only go above your original agreement by the increase in local taxes and insurance. Rentals on the other hand, are seldom stable. It's extremely rare that rents go down. Renters never accrue equity no matter what!
All most no one loses on a Home investment in the long term, it's only those who want to make short term changes, the real estate equivalent of "day traders" that risk loss.
If you find this short and simple, I agree! The virtues of Home ownership are so obvious they defy long explanations. Only those with sinister intentions can speak against long term Home ownership.
Bill
William J Archambault Jr
The Real Estate Investment Institute
Bill
William J Archambault Jr
The Real Estate Investment Institute
wja@reii.org Cell 832-259-7078, Houston 832-582-8415, Las vegas 702-516-1569
From my past: GRI 1975, FLI 1974, Catalyst from a client 1974 an agent that makes things happen, REII, The Real Estate Investment Institute 1995.
©William J Archambault Jr ©The Real Estate Investment Institute ©REII
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Are you ready to accept the "investment advice" of the average real estate agent??