This article is on point... Not all Real Estate is your House!
Nov. 22, 2009
View of home as investment needs to change, expert says
BY KATHLEEN M. HOWLEY BLOOMBERG NEWS
Kajal and Vishal Dharod paid $559,000 in 2006 for a new four-bedroom house built in Rancho Cucamonga, Calif. Today, it's worth about $360,000.
"We don't know how we can come back from a loss like that," said Kajal Dharod, 29, a first-time homeowner with a $4,200-a-month mortgage. "Buying the house was a mistake."
American homeownership, once considered a path to wealth, is now leading to disillusionment.
"We always talk about homeownership as being the American dream, but during the last decade, people forgot it's shelter and started thinking of it as a fast way to make or lose money," said Nicolas Retsinas, director of Harvard University's Joint Center for Housing Studies in Cambridge, Mass. "The quicker we move back to seeing real estate as a place to live, a place to put down roots, the quicker the housing recovery will strengthen."
Home-price growth in the next decade probably will average about 3.5% a year, based on …
and it concludes with
"After every major bust, there is a rethinking of that asset class," Carson said. "I think people will change their views about real estate and begin to look at it as a long-term investment that provides shelter, rather than a way to make a quick buck."
Dah! Real Estate for a Quick Flip has always been a very risky thing. Long Term Investment in income producing real estate is for the person that is looking for long term security.
And it irks me that when most think of Real Estate they only think of a Single Family Home. Or maybe a condo or townhouse. Well... Wake those folks up to the ownership of rental property as an asset class. Maybe start with a small Triplex or a 5 unit building. Then trade up. Sure it takes work. And patience.
As long as the business leaders in US Corporations look to just make enough to get a stock bonus to pay off we as a country will continue to fail. As long as real estate buyers look to buying a single family home for a quick profit we will have a messed up financial situation.
I believe in Long Term Investment in income producing real estate. If you do as well then please call me and lets get you in a good property while this is a buyers market.