Real Estate Isn’t For Day Traders
When I purchased my first home at age 28 I was advised I would have to live in it for 5 years to be able to come out ahead, considering the costs I would incur as a seller. That was fine as we bought the home because we planned on raising our family in it. We didn’t look at it as an investment like stock. Sure, we hoped it would grow in value, which it did.
Since that day I have lived and worked in real estate in this market for over 30 years. The common trend of those years is that there have been market surges, often cutting that time down to 3 years to come out ahead. Then we had the amazing years of the recent past. Record low interest rates coupled with easy purchase programs for almost everyone fueled a housing economy that never was and never will be again. Hear me folks, never again.
I see some good that came out of the last cycle: many responsible people were able to buy a home. We hear a loud cry about those that are delinquent or in foreclosure, but note this is referencing the minority of buyers. Most people that took this opportunity are paying their bills.
Also, a lot of people made some good money: loan officers, real estate agents, building industry employees, appliance stores, Home Depot and Lowes, and it actually rippled across the entire economy. The majority of our population own their homes. Most of their home equities have risen.