Wednesday, January 02, 2008

Real Estate vs. the stock market

Here are reasons why you get more for your money with a house than the stock market.

****Leverage: with stocks, you put in all your money for a little piece of a company. With a house, you put in a little money to get all of the house.

****Tax benefits: think about the benefits of fixed-rate mortgages, property tax write-offs, interest rate deductions, depreciation.

****Control: With a home, you have control - what you buy, how much you pay, and where you live. You can improve the value with repairs and updates. Stocks are less controlable.

****Lifestyle: With a home, you're purchasing for yourself and your family. The neighborhood you want to be in, the size and style home that fits your needs. And the more wisely you choose, the better off you are.

****Value: Unlike stocks, your house will seldom become worthless. Barring a catastrophe, your home will retain a major portion of its value, even in the worst of times. So don't get stressed out about losing a few percent this year. You'll make it up.

Remember, when you own a home, you own something tangible - if the market looks bleak, you still have a place to sleep. With the stock market if things go really down hill, you can be wiped out

Owning a home is a good investment.
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