While most economists see that the U.S. economy no longer in free fall, I remain apprehensive about buying investment in real estate. You cannot blame a little skepticism on how the projected economic rebound is going, and me, if I remain unhurried.
I share, probably, the sentiments of many that as long as there are no clear and solid indications that this economy is gearing towards recovery, I will keep my money away from any form of investments, especially on property. Although, the current fall in selling prices is too tempting to ignore, for example, the buying and selling mood in Missouri real estate.
Investing always entails many risks. But seasoned and smart investors understand that making sound investment and financial decisions should not only be made based on the condition of the economy and how the market is behaving. There are still other important factors to be considered other than these obvious conditions. In addition, and in fact, we have seen and heard of stories of self-made millionaires who made more money when they invested regardless of the state of the economy.
So, where do these things lead us? The question I posed remains: Should buying investment in real estate during a recession a good financial decision?
In my mind, it is a ‘yes’ and a ‘no’. Yes, because the prevailing low prices in properties on sale and the all time high rates in property foreclosures signify a possible good yield when the economy gets better. Of course, this means taking an optimistic stance. On the other hand, it is a ‘no’ because it could mean having your money tied for an uncertain period of time, with which you could have placed them on other high-yield investment ventures.
In all these, I’d like to take the position of Tim Blixseth, one of America's richest:I swore I was going to exclusively collect assets and not liabilities for the rest of my life. I swore never to take gambles I couldn’t back up, or that I couldn’t afford to lose. And, I’ve stuck with that ever since.
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Personal Value and Issues
6 comments:
You might be interested in CNBC's online special, "Boom, Bust & Blame: The Inside Story of America's Economic Crisis," which highlights key moments of the economic recession and tracks the story of the economic collapse. You can find the story here: http://bit.ly/OBm5w
Thanks!
Thanks. The special report was very enlightening.
I bought a second house last year, and am sure I am 20% down in value. Hopefully in 10 years I will be ok, and the memories are worth the price.
I appreciate your honesty on this matter. My daughter is thinking about relocating and with the low interest and being a first time home buyer, it has been recommended that she buy vice lease. She can get a home for as much or less than renting. I like to think about the positive reasons for investing long term. Buying could be a good thing for her but then again, it could be her worse nightmare. Life is a gamble!
Friends 4 Life!
@ RateNerd
the memories shared on a long-habited nest are surely not to be discounted. But these days, investing on a new one is a bit scary.
@ Eddie
Thank you.
Well, somehow nothing is really certain these days, and risks are inevitable (that what makes life exciting isn't it?)
Anyhow, investing of any type is really risky.
I guess good insurance strategies should also help keep one covered!