Is Real Estate Still a Good Long-Term Investment?
My husband got a call a few weeks back from a California-based mortgage lender, wondering if we wanted to refinance our mortgage (we don’t). Over the course of the call, this lender told my husband that, while real estate is down over most of the country, Oregon and Washington communities are still seeing some real estate appreciation, although it has slowed from the double-digit annual gains we had been seeing.
When you combine this fact with the recent IRS ruling that now allows 1031 exchanges on vacation homes (provided certain conditions are met), it seems that real estate may still be a good strategy for long-term investment. And if you’re looking for a place to invest … make sure you check out the beautiful homes at Alderbrook Properties (and check out the pictures right here in this post)!
If you want a good explanation of what this means for owners of second/vacation homes, check out this post at BawldGuy Talking (one of my favorite real estate investing blogs) on the ruling. The Bawld Guy gives a good summary. In another post (just below the linked post), he also makes a great case for real estate investing, comparing it to stock market investing. If you’re wondering where to invest these days, you’ll want to read the whole post.
What do you think? Is real estate still a good long-term investment?
March 13th, 2008 at 7:59 am
Definetly, a long term investing in property is an “evergreen” more or less over the years. Yes, USA market just faced an awful experience, which caused an important loss for many investors. But as we all know, situation was caused by an irrational politics of the FED, (to be correct by an intention to increase consumption after 9/11, without thinking over the consequences). Another factor that may globaly affect a proprety costs is a (speculative) house flipping. To respond your question, I wouldn’t be affraid to invest in proprety, like I’m a pro-long term investments, but what is important - a strict connection with rationality and good research on the market.