Posts Tagged ‘home buying’

Is Your Home Still a Good Investment?

Posted May 15, 2009 by Bernz

Earlier in the decade, it seemed like the old adage of “your home is your best investment” was a solid piece of financial advice. Housing prices across the country, especially in coastal areas, were booming. Homeowners who had purchased their homes ten to twenty years previously were making great profits on the sale of their homes.

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And then along came the housing crisis of 2008/2009. As the mortgage market tightened up, houses sat empty waiting for buyers who never came. People found it difficult to refinance their mortgages to access the built-up equity in their homes. Instead of moving up to larger homes, many chose to fix up the ones they had. Housing prices dropped like a stone with an oversupply on the market and not enough buyers.

If the value of your home is part of your long term retirement plan, this new reality must be factored in as it may be here to stay for years to come. If your home drops in value to what you paid for it or less, does it make sense as an investment tool? Yes and no. (more…)

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Posted in Financial Education, Investing Strategies, Investing in Real Estate | No Comments »