Straight Talk About Real Estate

Is it still a good idea to buy real estate? Should I wait until prices drop?

In 1990, we bought a house for $200,000. When the market was hot in the 80’s, that house would’ve sold for $250,000. As the market dropped, we thought we got a good deal.

As you may remember, home prices dropped some more in the early 90’s. Foreclosure was rampant, driving prices lower. If we had to sell then after 3 years, we would’ve probably lost $50,000. We held on.

As the real estate prices climbed back slowly, we were happy the value was regained to our original purchase price around mid 90’s.

Then the bull market began charging. When we could’ve sold it for $300,000, we were tempted to take our gain. But with no immediate need of the money, we held on.

Now it is valued at more than doubled what we paid.

After 15 years of owning this house, we’ve paid down the loan, taken advantage of the tax advantages, and it hasn’t hurt us any. Soon it will be free and clear of debt, and it will help put my children through college.

You may say, wouldn’t it have been better if we timed it better, caught it at the bottom of the market, sold it at the height of the market, and rebuy it when the prices are low?

Do you have a crystal ball? Hindsight is no sight. But even without the crystal ball, we did not lose, so that’s not so bad, is it?

Is anything in life a guarantee? How often do you see a perfect scenerio? But in the long run, real estate probably won’t hurt you.