Chapter 11

Seeking Shelter and Appreciation in Real Estate


Putting a roof over your head and containing your housing costs

Analyzing housing as an investment

Getting started in real estate investing beyond your home

Thinking of a home in which you live as an investment may seem like a poor idea to you. In many parts of the country, home prices suffered in the late 2000s and early 2010s.

But although homes may require plenty of financial feeding, over the course of your adult years, owning rather than renting a home can make and save you money. Although the pile of mortgage debt seems daunting in the years just after your purchase, someday your home may be among your biggest assets.

Like stocks, real estate does well over the long term but doesn’t go continuously higher. Astute investors take advantage of down periods; they consider these periods to be times to buy at lower prices, just as they do when their favorite retail stores are having a sale.

Comparing Owning a Home to Renting

As financial decisions go, deciding whether and when to buy a home is pretty challenging. You have plenty of financial considerations to contend with, as well as personal issues. Psychologically, many folks equate buying a home with settling down. After all, you’ll be coming home to your home day after day, year after year. You can always move, of course, but doing so can be costly and time-consuming, and as a homeowner, you’ll have a financial obligation to deal with.

In this section, ...

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