I heard an interesting statistic on the radio yesterday. Nationwide home sales prices are down 14% overall since last year, yet up an overall 60% since 2002.
I still don't get the doom and gloom. 60% increase does not say either to me.
Personally I am still investing in real estate. I am not buying ugly duckling homes -fixing them and reselling like I did a few years ago.
I am buying rental properties, the prices have come down, rents have remained stable and what do I care if the go up or down in value in the years to come. The key being - that I will pick and choose when to sell an investment property and I plan to sell when they are high in value.
I always shoot for a 10% return on my investment and so far, I have done pretty well.
I don't get every house that I bid on, some I lose to higher bidders. That's ok, buying an investment is non emotional and if lose a couple, then so be it. It is the ones I do get that count.
As far as my own home is concerned, yep mine too is worth less this year than last. That's the way the real estate market cycles, and in a few years it will be worth more than last year again. I have choices, I can sell in the next seller market or I can sell before and make up the spread by paying less for something else. It all comes out in the wash.
I do think we should stop and consider when we sell that the real value of the home is something priceless, and that we have already taken out. It is the place to go to feel relaxed and safe. It is the place to go at the end of the day that you can go to do just as you want, it belongs to you - not to a landlord. Nobody can tell you what to do in your own castle. So, if you deduct the amount you would have spent on rent and then consider the value in your lives that owning a home added. In my book that is always money well spent.
In the meantime if you have an investment property to sell. CALL ME. It might be right up my alley.