Everyone wonders how to reach financial goals and achieve financial stability in one's life.
There are multiple recipes and many books have been and will continue be written as the nature of financial and non-financial assets evolve. For all I know, wealth may be measured in the future by the amount of Facebook virtual credits you own!
For now though, I would like to address the part that Real Estate assets play in building a sound financial base towards a variety of usage, ranging from funding, college for your kids or a large purchase to building retirement savings.
Even in tough times like today with so many homeowners upside down, either considering a short sale or about to be foreclosed, real estate remains a sound investment. Why?
The first and simple reason is that the value of a home, a condo or a townhouse, providing they are properly cared for, does not evaporate unlike the value of a stock in some instances if the company goes bankrupt or is mismanaged. There are no "penny houses" unlike "penny stocks".
While homes prices have fallen substantially in San Jose and across the US (read my previous post here
), the intrinsic value of a house remains, and includes at least the value of the underlying land it was built on.
My next post will address the opportunity cost, benefits and drawbacks of buying a home at an early stage in one's life.
© Sophia Delacotte CDPE, SFR, CHS
San Jose Realtor
Cell: (408) 717-2575