Sunday, January 8, 2012

A Home Investment?

I got lots of flak in the late 1990s and early in the 21st century because, from 1996 to 2008, residential real estate values rose sharply, about 72% on average.

Research shows that from 1890 to 1996, residential real estate values increased about 27%. I had always advised folks to treat a home as just that, not a means of growing rich. The small increase in home values would attest to that reasoning over the years.

That up-cycle has obviously come to a sudden end and is in a down-spin. And I repeat: Buy a home to suit your budget and your family requirements.

If you want to invest in real estate there are other options. For example, commercial REIT index mutual funds or ETFs. ( See the Earl J Weinreb NewsHole® comments

No comments:

Post a Comment