Investments: Ann Arbor Real Estate or Stocks? Hmm…
I began a conversation with a few of my Twitter friends regarding a recent post on how to recover losses in your 401k/IRA accounts. Using Twitter, you’re limited to only 140 characters, and my answer to where investments should be made, and why, is a lot longer than 140 characters!
The Question
From @tvanderwell: “devil’s advocate time – when prices are down, how do you persuade people that RE is the place to invest”
My answer: “have you LOOKED at your stock holdings recently? When should you buy those same stocks, when you did or now?”
So the question has been posed: As an agent, I know inherently that real estate is THE investment to make, but how do I educate my clients that it’s a GREAT investment option RIGHT NOW? Look at how many of the world’s richest people gained their wealth: through real estate. Look further at those that made their wealth via any kind of investing. They did not purchase stocks, commodities or real estate at market highs!
For clarification, we are talking about real estate as an investment, not necessarily as a residence, although there is some spill over of thought in that direction too. The added benefit in “investing” in real estate that is your primary residence, is that the utility factor of the property needs to come into play. The days of the home being an ATM are gone, for now. The days of seeing your home as a place to keep you warm and dry are back. If you have the ability to purchase now, live there for 7-10 years, your “investment” will keep you warm and dry and likely give you some price appreciation at the end. Continue Reading
