Where should you invest your money? Real estate or the stock market. The prevailing wisdom from cocktail parties would suggest real estate. But is it right?
The answer is yes - in the short term. U.S. real estate sale prices have increased more than 56% from the beginning of 1999 to the end of 2004, as tracked by the Office of Federal Housing Enterprise Oversight, part of HUD. During the same period, the S&P 500 index dipped nearly 6% during the same period.
Long term, over 25 years we'll say, the S&P 500 will do better. Pitting home sales against the S&P is an imperfect and less than sophisticated comparison. This is where you need the assistance of a Certified Investor Specialist Agent (CIAS) to help you decide if real estate investing is right for you. I have this certification and can help you to determine if you are ready to invest.
Housing inventory is decreasing all over the U.S. and especially in the D.C. and Maryland suburbs. While mortgage rates are staying low, this decrease in inventory will drive home prices upward. Buy before the prices get outside your investment budget.
For more details on real estate investing, check out my "Invest with Confidence" page.
Emcee Arah - "the REALTOR with Architectural Dimension" – is both a Certified Distress Property Expert (CDPE) and a Certified Investor Agent Specialist (CIAS). He is uniquely equipped to assist you in navigating today's residential real estate market. Contact us online or by phone at (301) 452-5252. And don't forget to leave your comments on our Facebook page – we'd love to hear from you!
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