Is real estate still a good investment?

We all can attest to how much media coverage is currently given the nation’s real estate industry. So much has been said, it sometimes seems that we’ve forgotten that we all need a place to live, and how we provide for that need hasn’t really changed much over time. Owning a home isn’t right for everyone or every situation, as it always has been. However, if one examines the rationale for when purchasing a home makes sense; that also hasn’t changed. Home needs are still there; family growth or reduction, upsizing or downsizing, relocation, vacation homes, etc.

Consider that mortgage rates and programs are still very attractive. The major change is that risky loans and companies who provided them have pretty well gone by the wayside.
Investing in one’s residence has always been one of the stable ways to build financial security. It is important though, to remember that the basic model has always involved holding the property for at least 5 years before attempting to sell for profit. The basic average appreciation rate of 3-6% per year has held for many years.

Nothing has changed. In today's world, investing in property is still a viable means to enhance a person’s financial portfolio. Throughout the last 50 years there have always been periods of slower or faster appreciation. The last 7 years has exhibited one such extreme growth and correction cycle. If you bought early during that period and held, you have achieved approximately the basically 4% per year appreciation (including the recent downturn). If you bought later and hold for the normal time you should also do fine.

The real problem has come to those trying to make quick profit and got caught in the down period of the last 2 years. Given the complexity of buying or selling in today’s market the best advice is to ask a real estate professional to assist from the beginning concept if possible.
When considering perhaps the largest investment in your future, it makes good sense to get professional help. By the way Realtors usually provide this service free of cost to buyers, and at low cost to sellers.