A friend of mine recently asked, “Is real estate still a good investment?”
I paused for a moment, and then we had a long discussion about it.
On the surface, without thinking too deeply, real estate is always a good investment.
Yes, that’s what the interested parties, like real estate agents and mortgage bankers, always say and want you to believe.
But I’ll give them some credit, because it’s pretty much true, real estate is a good investment.
However, that doesn’t mean it’s always the right time to buy real estate, there’s a difference.
I guess the point I’m trying to make is that yes, real estate is a good investment, but if you can get it for 20% less next year, why buy it now? Why not rent?
Sure, you run the risk of missing out on your dream property or investment, but chances are there will be something similar available down the road.
Looking at the real estate market right now, I don’t think it’s the best time to buy, but real estate is still a good investment.
History has told us that, and there’s no reason to believe that will change because of the unprecedented housing bust we’re currently dealing with.
There’s been a lot of news about real estate prices dropping like a rock, making many wonder if now’s the time to buy.
But the numbers are a bit misleading because they’re based on sales, many of which happen to be the lowest priced homes on the market, like foreclosures and other distressed property.
Home prices really haven’t fallen that much in desirable areas throughout the country, so you might get a rude awakening if you go house shopping thinking you’re going to get the deal of a lifetime.
But in the long run, you’ll probably do okay if you purchase a property and hold onto it, as history has told us that real estate is always a good investment.