Who to Believe in Real Estate News
Here’s more timely information about Raleigh real estate from Rick Freeman and Amy Davis, the Freeman/Davis Home Team at Allen Tate in the Triangle.
Hearing conflicting viewpoints and opinions like these can cloud decisions about buying a home. Stocks are tanking! No, the economy is recovering! It’s a good time to buy! No, it’s time to sell! Is homeownership really a good investment?
Consider that:
- Comparisons between investments can be misleading – especially when local real estate trends are compared to stock market bubbles, which are tied to the national economy.
- When you put money into the stock market, the total value of your portfolio is at risk. For instance, if you invest $100,000 in the stock market and it drops in value by 20%, you’ve actually lost $20,000. In real estate, a buyer can purchase a home with a down payment as low as 3% (or even lower in some cases). If, after a $100,000 home is purchased, its value drops by $20,000, the homeowner has actually only risked the down payment of $3,000.
- When investments grow in value, it takes a much higher percentage growth in the stock market to result in the real money growth afforded by real estate.
- Homeowners can sell their home every two years and take a large portion of the profit tax-free ($250,000 for single home sellers; $500,000 for married home sellers). Try doing that with the capital gains on your stock portfolio!
- Unlike stocks, your home protects you from the elements, provides a place to raise your family and becomes a storehouse of wonderful memories.
If you’d like to find out more about building your wealth through real estate, please give us a call.
P.S. You may also enjoy reading our latest e-Tips on how buying a home can put more money in your pocket. Click Did You Know Your Paycheck Gets Bigger When You Buy a House? to learn more.
Search For Homes in the Triangle on our Raleigh MLS VOW (Virtual Office Website), the most advanced home search tool online.