A home is a home and not a part of the stock market. If you want a home as an investment, you have to be like the stock traders and know that there are ups and downs, lots of risks, big profits and/or losses. For several years, homes did perform so well as an investment that even the typical homeowner was able to cash in on the great investment they made by buying a home. Somebody who had bought in 2001 could double their money by 2005. Real estate seemed like the sure fire investment portfolio. Lost in the frenzy were some of the most basic & oldest of real estate principles. The first is that residential real estate is a great long term investment, long term being defined as a minimum of 5-10 years. The second is that investment also makes a great home for one’s self and family. While a homebuyer was being patient for their investment to mature, they had all the benefits that living in the home provided.
 
So now let’s talk about what a home is really all about. Think of your grandparent’s home for a moment…what do you really think about? Isn’t it cousins running around during the holidays, the warm fireplace, chasing frogs, climbing trees, and much more? Well if you thought of your grandparent’s home and the first thing you thought about was how well their investment performed, maybe you were born to be an investor. So how about we look at a home for what it can mean to a family.
 
I recently had the experience of being the listing agent on a foreclosed home that was vacant and had no current personality. About a month after the new buyer closed escrow, I had the satisfaction of driving by and seeing Christmas lights being hung, while children were running around the front yard. I was so glad, not just for the opportunity that this family had in purchasing a house, but the fact that they took advantage of the opportunity and have turned that house into a home. They are living the American Dream. That example of owning a home and sinking roots into the community will positively influence their children and generations to come. They too will live the American Dream.
 
Buying a home can be a great long term investment but as you can see your home has far more benefits than just the financial aspect. That is why there are all the old sayings: “Home sweet home”, “Home is where the heart is”, and “There’s no place like home”. That is because one’s home is a place of comfort. There is a pride in homeownership. It provides you with a sense of accomplishment, a feeling that you have “made it”.