Invest In Real Estate, Invest In Your Future
A few weeks ago we wrote that using your 401k to buy a home (especially your first home) might make a great deal of sense, in the long-term. With that in mind, we thought we’d take this idea a little further to explore why this is true.
Writing for Zillow over on U.S. News’ Money blog, Leonard Baron (MBA, CPA, and a San Diego State University Lecturer) explains in a recent article that while “location, location, location” has long been the real estate mantra “the phrase ‘long-term ownership’ is by far and away the three most important words in real estate.”
Why is this? Because, for a buyer, the longer you hold on to a property the greater the chance that it will increase in value. But is buying right for you? You need to ask yourself some basic but necessary questions. Are you planning on holding on to it for at least 5 years? Do you love it? Can you afford it? Is buying comparable to renting ? (In San Diego, this is more likely to be true.) Baron has some other great questions to ponder, too.
On the other hand, selling a home right now might be a way to insulate yourself from any volatility, protecting yourself and your hard-won equity.
If you have any questions about utilizing real estate to invest in your future, don’t hesitate to contact us.
[image: Jupiterimages/Comstock/Getty Image]
You can follow any responses to this entry through the RSS 2.0 feed.
