Real Estate is still a sound investment.
Just when you thought investing in real estate was old news…guess again. I just finished reading an article about the real estate market in Munich, Germany and real estate sales in this area are up 10% . The article stated that real estate sales are up because of the volatility of the Euro and people are worried about putting their money in the bank or investing in the stock market. Sound familiar?
During a conversation a few weeks ago with a friend in the real estate business in Austria he mentioned the same sentiments with his clientele. With the fairly healthy real estate market that we have seen over the last two quarters in San Carlos, Sonora I believe this attitude might be affecting buyers here as well.
I asked some friends the other day if they sold their home how and where would they invest the money. We talked at length and both agreed that the stock market seems similar to gambling in Las Vegas. And, although your money is probably safe in most banks in the US and certainly in Canada your money is collecting more dust than interest.
It would seem to me that putting money back into real estate for purposes of safety rather than speculation is coming back into style. When you invest your money into “bricks and mortar” you have many more options. With a house you can live in it, rent it, or depending on where your house is located, you could open a small home-based business.
The bottom line however is that many people are sleeping better these days knowing that their hard earned money is invested in the roof over their head, especially when that home is mortgage free!
