Why Invest in Real Estate
Everyone likes real estate, whether it’s your home or an investment. Real estate is tangible. Unlike stocks and bonds, real estate can be touched, handled and improved. Real estate provides “psychic revenue.” There is a pride of ownership that comes with real property that doesn’t come with other property.
Financial media are rampant with articles on why owning residential real estate isn’t such a good idea. They point to arguments on how real estate decreases mobility or how much it costs to maintain. The articles have some validity, but they are often marked by glaring omissions. Yes, real estate can limit mobility, but it has always been that way. That is nothing new.
Most of us have rented and owned residential real estate; we would argue that most of us prefer to own. When we own our house, it feels like a home – that’s the psychic revenue. Value matters, to be sure, but if the scales are close after weighing the renting/owning choice, they still tend to tilt toward owning.