This past year has been a very exciting time to be in the real estate business. When people find out that I am a Realtor, they ask me what my thoughts are on the current state of affairs. Most people have the same questions, and are quite fearful. Here is a reprint from David Bach's November 14 newsletter. He is the bestselling author of the Finish Rich Series, the Automatic Millionaire Series, and Go Green, Live Rich. He has been a guest on The Oprah Winfrey Show, the Today Show, the Early Show, and is a columnist for Yahoo! Finance. He is best known for his common-sense strategies for living and retiring rich. Take a look at this question David was asked about what to do during difficult markets.
Q: What can you share about these difficult markets that we now see ourselves in? What about the housing market? For two decades you have been a huge advocate of buying a home as the best investment you can make in your life time-do you still feel this way?
A: Without a doubt - without any question in my mind - the best investment you will make in your lifetime is the home you buy and live in. As long as you are alive, you have to live somewhere. And if the recent downturn in the stock market proves anything it's that housing is your best investment. Why? First of all you can't live in a stock, mutual fund, bond, treasury, money market account, etc. When you buy a home you get to live in it! Your home is your castle. It's where you love and live with your family-it's where your memories are made. Homes are much more than investments, they are your shelter and your safety. But if you return to why homes make great investments-the simple answer is that they are forced savings (when you pay your mortgage you pay down your home) and they ultimately are leverage and they go up in value long term. I promise you a decade from now most housing markets will be higher than where they are today.
I cannot agree with David more! One of the fundamental basics behind investing in anything is "Buy Low, Sell High" Here we are! A time when prices have stayed relatively stable, and interest rates are historically low (as I write this today, owner occupied interest rates for a 30 year loan are hovering around 5.5%!), this is a wonderful opportunity to buy a new home, whether you are ready to move-up, downsize, or buy an investment property. Unlike a stock or bond, a home is a tangible asset. Years from now everyone will look back and say "I wish I would have bought back in 2008 or 2009". You can make that wish a reality!
Give me a call if you'd like to find out more about our current local economic situation, and where there are opportunities to make solid, sound investment decisions.
Janna Rankin Scharf, AB, GRI, CSP, CNS, CLHMS, provides a superior level of real estate services to home buyers and sellers in Coeur d'Alene and Kootenai County, Idaho. Visit www.JannaScharf.com to search for homes in the Coeur d'Alene MLS for anywhere in spectacular North Idaho.
Janna Rankin Scharf, 208.651.9700 NorthIdahoJanna@gmail.com
Janna Rankin Scharf provides a superior level of real estate services to home buyers and sellers in Coeur d'Alene and Kootenai County, Idaho. Visit www.JannaScharf.com to search for homes in the Coeur d'Alene MLS for anywhere in spectacular North Idaho.
No matter how grand or modest your real estate dreams may be, you can turn to me in confidence. Give me a call today and let me know what I can do to be of service to you!
Janna Rankin Scharf AB, GRI, CSP, CNS, CLHMS 208.651.9700
Janna, just confirming what us Realtors all think. We will always need a place to live, so our buyers need a home, and now is THE time for that purchase. ;-)
Great post! Thanks for the reminder that it's always best to buy low, sell high.
Kevin and I are in the middle of building a cabin on land we own on Lake Pend Oreille for this very reason. Right now contractors are working for a premium and we hope to take advantage of our current times and reap the rewards later.
Maryellen