sirajmoosa
03-17-2007, 05:14 AM
Real Estate can be a great investment with unusual appreciation. We have had several years years of exceptional annual appreciation.
We are still having great appreciation, perhaps as much as 20% annually in some areas. But, it is not as extensive nor as much as it was. Real Estate as an investment can be fairly good to best in the world -- but it is an investment that is best viewed over the long term; There can be long periods when it does not go up in value much, if at all. Taken over a period of decades or even centuries, nothing on earth beats it.
Another problem with real estate is that it is not liquid, that is, it is not easy to convert to cash -- like stocks, bonds, and savings accounts are. Real estate is particularly non-liquid during a downturn in our markets. You will
not likely hear this anywhere else, especially from other Realtors, but real estate is not a great investment, it is usually a good investment but not always, and not all the time -- when looked at short term.
Too many people buy real estate as an investment and forget that there are other reasons to buy. I suggest that you will be much happier if you purchase real estate for use and for lifestyle rather than as an investment, when it comes to your place of residence or your second home. Perhaps it should be almost entirely about lifestyle. After all, a primary residence or a second home should be a place to enjoy a lifestyle that allows you to relax and wind down from the rest of life.
(http://www.siraj-realestate.com)
We are still having great appreciation, perhaps as much as 20% annually in some areas. But, it is not as extensive nor as much as it was. Real Estate as an investment can be fairly good to best in the world -- but it is an investment that is best viewed over the long term; There can be long periods when it does not go up in value much, if at all. Taken over a period of decades or even centuries, nothing on earth beats it.
Another problem with real estate is that it is not liquid, that is, it is not easy to convert to cash -- like stocks, bonds, and savings accounts are. Real estate is particularly non-liquid during a downturn in our markets. You will
not likely hear this anywhere else, especially from other Realtors, but real estate is not a great investment, it is usually a good investment but not always, and not all the time -- when looked at short term.
Too many people buy real estate as an investment and forget that there are other reasons to buy. I suggest that you will be much happier if you purchase real estate for use and for lifestyle rather than as an investment, when it comes to your place of residence or your second home. Perhaps it should be almost entirely about lifestyle. After all, a primary residence or a second home should be a place to enjoy a lifestyle that allows you to relax and wind down from the rest of life.
(http://www.siraj-realestate.com)