Tuesday, May 27, 2014

Why I believe in Real Estate

My introduction to Real Estate was in College.  My degree is in Business with an emphasis on Accounting and I needed an elective.   So I thought I would take a Real Estate course. 
Growing up a Military brat we never owned a home so I did not really know anything about homeownership.   Once I started the class I was hooked!  I bought my first home at age 23 for $500.  I saw an ad in the Newspaper by a very savvy RE/MAX agent that said-Buy a home for as little as $500.  We looked at two homes in my best friend’s neighborhood and I picked one and bought it.  It was $48,000.  I could not believe that everyone wasn’t buying homes.   You can get in for little and sometimes no money, you get to live in the home, make memories in the home, improve or remodel to your taste, write off the interest and taxes and then when you sell it you can keep the profit . (Certain limitations apply)  This seemed like a smart investment.  Even if your equity goes down and you are “upside down” you still need a place live or if you have to move for a job you can rent it out.  The real estate market historically has always gone back up so if you hold on you will be able to sell at some point.  

So in conclusion I believe in Real Estate because I like having my money parked in something I need (shelter) and something I can use. 

This blog in no way is to give financial advice.  It is just why I believe in Real Estate.  You should never put all your eggs in one basket; however I think real estate is a basket you should include in your portfolio.

By the way I got my Real Estate License when I was 26 and I still believe in Real Estate 20+ years later.