Well
before the residential real estate boom up to 2008, I had always said
that a home purchase was never to be considered a family investment.
Though that boom had boosted values to great heights.
I have always suggested that you buy a home only to suit family needs and comfort; there are always better investment alternatives.
During the home real estate boom, it was hard to maintain this position while a bubble was being created by a too-loose Federal Reserve monetary policy and politicians intent on giving cheap mortgages to those who could not afford buying homes.
Now that the real estate picture is approaching normal again, what does the average investor do when attempting real estate ownership? The answer: Observe the same precautions.
Speculation in raw land and farm acreage offer possibilities only for those with suitable background. Rental properties require management that can be costly to hire or personally time-consuming,
The best method for the average investor is to have funds in an REIT, in the form of a low-cost mutual fund or ETF. It offers diversification with minimal risks. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)
I have always suggested that you buy a home only to suit family needs and comfort; there are always better investment alternatives.
During the home real estate boom, it was hard to maintain this position while a bubble was being created by a too-loose Federal Reserve monetary policy and politicians intent on giving cheap mortgages to those who could not afford buying homes.
Now that the real estate picture is approaching normal again, what does the average investor do when attempting real estate ownership? The answer: Observe the same precautions.
Speculation in raw land and farm acreage offer possibilities only for those with suitable background. Rental properties require management that can be costly to hire or personally time-consuming,
The best method for the average investor is to have funds in an REIT, in the form of a low-cost mutual fund or ETF. It offers diversification with minimal risks. (See the Earl J. Weinreb NewsHole® comments and @BusinesNewshole at Twitter.)
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