Recently a pre-school child showed me her collection of savings—pennies, nickels, and the odd quarter stashed away in an old Mason fruit jar. It didn’t add up to much, considering how little a dollar can buy you these days. But she was so excited, because she was going to buy herself a Strawberry Shortcake doll when she had enough money saved.
How basic. And what a great lesson for the rest of us.
Basic is how I see real estate investment. You buy a home or investment property and consistently make payments on it. Then one day you realize the benefits of investment—monthly payments that don’t inflate with demand, building equity or increased cash flow.
Many people I talk to are disappointed that a home they paid $250,000 for in 2006 is now worth $200,000. Most of those people only put between $20,000 and $50,000 down, and have no plans to move anytime soon. They haven’t lost $50,000—they are just in a down part of the market. And in Walla Walla, all indications point to a recovery to those 2006 prices in the next three to five years.
So why invest in real estate now? Because housing affordability has not been this good since 1971 (HUD). Because 50-year low interest rates will not last forever. Because from January 2000 to March 2012 the DOW Jones return on investment was 18.4 while real estate was 36.7 (MSNMoney.com, Case Shiller). Because lending programs are available that make it possible for you to benefit.
So, here’s your action plan. Call a Realtor, talk to a lender, learn about your market and carefully evaluate whether home ownership or investment real estate can benefit you. Every week I meet people who are finding their opportunities in this market and experiencing all the benefits—and that’s just icing on the strawberry shortcake. free slots no registration no download