Why Buy (part 2)…

Resuming our conversation “Why Buy…”

Buying Real Estate is a Good Investment

Last time we documented that the driving reasons for the purchase of a home aren’t all about price or even financial considerations. Even so, we would be remiss not to consider the financial aspects of the decision to buy. We documented additionally, that despite the current fall in real estate values, real estate has out performed the Stock Market over the course of time even the tumultuous recent past beginning January 1, 2000… and that did not include the recent declines in stock prices occurring the first part of this month. Taking that decline into consideration gives Real Estate an even more “glorious” track record…

We also established that just like day trading, short-term real estate investment is not for the feint of heart or the casual / uninitiated investor. I’ll speak more about flipping and investing in a future article. True enough; there was a time when it was a sure thing almost regardless of what you purchased. Now that day is gone; and, buying smart is paramount, as it should have always been.

WSJ: Buy Now

Even so, it’s about more than price. To me, the financial decision really comes down to those of quality and costs… the quality of the investment and the cost of the investment.

First Quality! The first thing in selecting any investment should be the quality of the investment… In real estate this can be summed up as location. No other attribute impacts the value of real estate as location. Location determines the potential for a property to perform in the future. And yet all too often, I see buyers make their decisions to purchase based on easily changed property characteristics, such as room color or whether the yard is shady or not … all the while seeming oblivious to location. True bargains are based on quality versus cost!

Buy Smart .. Buy to Hold!

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