Is Homeownership Still Worth It? (conclusion)

Did your purchase cease to be an investment just because it was loosing money? No.

Did you loose money? Only if you sold then… If you continued to hold the stock it would have recovered a good bit but not all of that ground… At market close on September 3 the price for a single share of Goldman Sachs was $147.29. I am hoping you see the irony here!

The point is that an investment does not cease to be an investment simply because you can’t recover your investment at a given point in time or at all.

One more stock market example: I mentioned in a previous conversation something about 20,000 shares of Bruno’s stock. Brunos (the company that purchased this thriving business not the family) went into bankruptcy, re-organized to stay in business and left thousands of shareholders like myself out in the cold… The stock could not even be sold… there was no market. In real estate, you own a real asset not just a symbol of an asset. There is almost always some residual value, because it is real.

To the extent that your purchase of real estate is an investment, it is your duty as an investor to watch and understand the market and make the decisions that are appropriate for your family and that investment. In the realm of real estate that will include your care of the property and the community in which it resides.

Historically, real estate has been among the most forgiving of investments and simultaneously offered shelter for our families and security to our society. It is really only one a few ways that most people can participate in our Capitalist system other than as a consumer of goods, so that the system works for us. We are in a down market… there are investors, homeowners and those who wish to be homeowners ready to take advantage of that market.

May the Market be with you.

Page 2 of 2 | Previous page