Is real estate a good investment?Answer: It can be an excellent investment, but it can also be bad. This is a very broad question. While most people are thinking in terms of making a real estate purchase financially, it is much more than that. Purchasing a house, for example, turns into a home. Having a home with roots, building a community, and establishing yourself is a solid life investment in many cases. And when you invest in your life, that can help your finances. So there are different ways to look at this.
Purely financially speaking: it can be quite lucrative. Some homes in Virginia Beach sold for $100K and are now worth $400K just 30 years later. If you buy a foreclosure, you could flip and/or rent and make a career of that. Owning a house gives you options to pull a line of credit by tapping into your equity. A house is an asset but also a liability, especially if you have a mortgage. And along with your house appreciating in value through the years, there is maintenance. A roof replacement is a minimum $5,000 and can go much higher. HVAC replacement can range from $4,000 on up, too. So unless you're investing, real estate is probably not the best financial instrument to make money long term, but it can be a solid choice because after all, you have to live somewhere, so why not make some money off it? |
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