Is real estate still a good investment? The last decade has seen a drastic change in the nation (and world) real estate market.
If we take the average over the past 27 years according to the chart above, we are looking at about a 260% increase in home value. Though this isn't exactly how home values are determined, it still gives one a good idea of investment potential of real estate. It's OK.
The road to riches is not fast. And if you're like me, it's not just about the investment potential, it's about being happy, not worrying so much about short term downs in the market, or even huge losses in short periods of time.
Is real estate still a good investment. Of course it is! This is not about investing, it's about what you get for your money. If you were looking at this from a strictly monetary point of view, then yes, investing in an index fund which simple diversifies your investment capital into many stocks and spread out your risk with the knowledge and "best guess" that the market will most likely rise over time. As long as you leave the money alone and let it work for you, it will return great dividends and capital gains.
However when you're talking about real estate in terms of intrinsic value, and what you gain from it as a family, the value is incalculable. If you bought a house in 1987 and lived in it for 27 years, and decided it was time to sell it and move into something smaller (now that your kids are raised and out of the house), you'd be sitting on a hefty little nest egg. Not only that, you got 27 years worth of use out of your home.
Your kids had a place to live and grow, a roof over their heads, and you now can reap the rewards of a life well spent and a wise investment decision.
It's not just about the money, it's about the intrinsic value you get from it over time.
So yes, overall, real estate is a great investment.
Real estate is a great investment option. It can generate an ongoing income source. It can also rise in value overtime and prove a good investment in the cash value of the home or land that you buy. You may use it as a part of your overall strategy to begin building wealth. However, you need to be sure that you are ready to begin investing in real estate.