Is real estate finally a good investment again?  In a Wall Street Journal article by Dave Kansas, he looks at the indicators of whether this is a good time to invest in homes.

"Basically, the real estate market remains a mess," Kansas says, and "homes are probably the most hated asset class in the country. That's what happens when a bubble bursts. People avoid thinking about the value of their home. Sellers moan about no offers, buyers gripe about impossible lending requirements."

But long-term interest rates are at an historical all-time low and probably aren't going to go much lower. Throwing caution to the wind, this is the time when smart investors jump in.  "To paraphrase Warren Buffett, be fearful when others are greedy and greedy when others are fearful. Mr. Buffett backed that idea when he invested in the stock market in the teeth of the financial crisis in late 2008 and early 2009."

When investing in real estate, you need to think long term.  While we aren't seeing inflation these days, we will soon and real estate performs well during inflation.  "The economy has enjoyed a disinflationary period since the early 1980s. A number of folks think that cycle is slowly reversing itself." stated Kansas.

Home sales are moving in the right direction but the job market is still struggling and it's hard to buy a home without a job. "Optimists see recovery this year. Pessimists see pain for several years ahead." 

Mr. Buffet has predicted that we will see the housing market bottom out this year. Hedge Fund Manager, John Paulson, who made $20 billion betting against the housing bubble agrees, "If you don't own a home, buy one. If you own one home, buy another one, and if you own two homes buy a third and lend your relatives the money to buy a home." Real estate is still a good investment.

Read more in The Wall Street Journal: 4 Reasons to Buy a Home Now - SmartMoney.com http://www.smartmoney.com/personal-finance/real-estate/-1295050347411/#ixzz1BQDJm6zG

photo credit: straightedge217

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Posted in Technology And You, Marketing, MBI Headlines, Buyer Resources, Ownership, Real Estate Trends, Real Estate Market Conditions, Blogging

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