Real estate is still a good investment

Although at CENTURY 21 we are certainly seeing the real estate market make its way back, the market crash has resulted in a great number of people asking questions about real estate as a long-term investment strategy. You only need look at most newspapers to see a whole host of real estate agents, academics, journalists, and financial gurus discussing this very topic.

  

Real estate has long been considered a great investment, but with the problems some people have faced due to the global economy in recent times, it’s easy to understand why they are questioning if that is still so. When you look at real estate as an investment opportunity, one of the major conclusions as to the real financial return of home ownership is as simple as not having to rent any more. In that vein, some say that you should purchase as much property as you need, and no more. Many people may yearn for a really spacious home, but the argument is that a home larger than you actually need isn’t an investment, it’s an extravagance. The comparison has been made that it’s similar to renting an apartment that is bigger than you need - it’s probably going to cost you more, and it may be what you ultimately want and are prepared to pay for, but it’s probably not the smartest move financially.

  

That makes one of the major points to consider whether or not you classify your primary place of residence as a good investment. This is something that the likes of Robert Kiyosaki has been making a point of for years -  you probably shouldn’t. Investment real estate is often still a good idea though, and I say often because like any investment it needs careful consideration and whether or not it’s a good idea for you depends entirely on your circumstances which are no doubt very different to the next person.



 
Rental properties or shares in publicly-traded real estate investment trusts still makes a lot of sense for a lot of people, especially now when we’re experiencing such low interest rates. People may be questioning real estate’s long term potential at the moment, and that’s to be expected, but it’s important to remember that it’s an asset that’s been making people rich for a long time, and it will continue to do so. 
Posted by Charles Tarbey on 22/07/2009 at 10:19 AM | Categories:

3 Comments

Shagga

Shagga wrote on 23/07/2009 4:14 PM

Geez, thats deep for so early in the morning Paul!
yuba city homes for sale

yuba city homes for sale wrote on 11/08/2009 11:38 PM

Quite true. Real estate is risky but money comes in a lot.
san diego realestate

san diego realestate wrote on 03/09/2009 6:37 PM

Wow, I never knew that Expanding Equity Investment in Small Businesses. That's pretty interesting...

Write your comment





Leave this field empty: