A lot of people still aren’t sure if real estate investing remains as one of their best options for creating long-term strategies for building wealth. Can the average person still create wealth from real estate? Are these investments still a wise lifetime decision for America? If the answer is ‘yes’, then where are all the pessimists coming from? So, is Housing Still the best investment tool of a lifetime?
Behind The Scenes The Headlines
You are always going to find real estate companies bragging about all the benefits to acquiring real estate. Of course the would, it’s their job. Others who are into the rental side of real estate say the same thing about their professions. In all honesty, you can find statistics out there to support nearly any point of view or argument.
Countless years of older real estate statistics have seen themselves revised, with new indexes created so the clock can be restarted. Even the national GDP got a facelift. The people who perform these tasks have no interest in actually tuning into the job numbers or unemployment numbers. The books have been skewered so much, they feel it a waste of time.
Even though the most conservative stats reflect the housing market making a rebound (especially in your warmer areas like in San Diego), the doubters remain. All it takes is a little common sense to determine whether or not real estate is still tops for most investors. This fact support the more affluent individuals who have a top 1 income, and it also applies to the penny-pinchers as well. Stocks are continually demonstrating how they are an extremely volatile risk, while UT San Diego is reporting that the local real estate market is undervalued by as much as 50.
There are plenty of American in the stock market who have literally lost 6 figures overnight. Direct investing into real estate is not really all that volatile. There are no losses until a property actually sells. Here is an example –
Homeowners in Southern California witnessed their home values both rise and fall across the past couple of decades. However, if they’d held off on selling for a while, until the prices exceeded their previous peaks, then they would have came out in very good shape.
Investing in Real Estate When You Can Not Afford Your Dream Home
Among the top excuses for not buying a home, from a lot of people, is that they still cannot afford to buy that dream house yet. Naturally, if they don’t invest into real estate in some fashion right now, then the odds are going to be against them ever having the money to buy their dream home. Incomes have not gone up, however, home prices and rents totally have. People who want to own their own home should absolutely not take their money and invest it into stocks and bonds. They should always prefer cash. We know, of course, that cash will also depreciate. It can be risky while under the mattress or in the bank.
The fact is, regardless of the scoffers, real estate remains one of the best ways to build wealth and obtain the cash it takes to purchase that dream home. Couldn’t these people find the kind of home they could be comfortable living in for just a few years? The later on they could invest in a rental property.
Sadly, lots of Americans are being seduced into the mindset of being a life-long renter. They accept this without even realizing what a horrific mistake it is, and understanding the consequences of their actions. Think about people paying 50 of their income to rent a place right now. Should the rent rise another 20 they would be priced right of renting and also out of purchasing that home. What are they to do then?
American are living longer these days, and see their company retirement plans dissipating before their eyes. They need to be thinking about where they’re going to live out their next 40 retirement years on a limited income. Even Warren Buffett, the legendary billionaire (with interests in insurance companies, energy, and fairly high stakes invested into companies like Wells Fargo and the Coke), will still tell you that his home remains the best investment of his life. What would you say, is Housing Still the best investment tool of a lifetime? I say YES.