Real estate is not a good investment
- More people will be walking away…
- Property owners going further in debt
- The worst thing they could do
Real estate is not a good investment. Anyone who tells you this has a vested interest in selling you property.
Take a look at applications for mortgage loans, they are at the lowest in decades. Also, more people will be walking away from their properties as the prices fall even more because people are not applying for mortgage loans and sellers will have to drop their prices to attract the buyers that are left.
Add this to almost two-thirds of homeowners deciding to upgrade their homes in some way, and you have these property owners going further in debt in a property they thought was coming back and they will soon regret putting on that new addition, or doing that $50,000 in remodeling.
These homeowners will realize in the back of their mind they can’t sell their properties. They are doing the worst thing they could do – pouring more money into it that they’ll never regain. The only good news is that they’ll have a pretty new house to live in until they can’t afford it any longer.
QUESTION: What should readers take away from this message today?
ANSWER: That in future decades people will look back and wonder why anybody wanted to own real estate.
QUESTION: Why is this information timely?
ANSWER: This information is timely because people are doing two things; fixing up their houses so they can sell them and they’ll never get that money back, and they’re fixing up their house to live in them for the rest of their lives. Neither one will work out like they planned.
QUESTION: How can readers best apply this information to their lives right now?
ANSWER: You must consider the state of the mortgage industry, along with the millions more homes that will be defaulted on before you even think about putting more money into the property you own right now.
COMMENTARY: Maybe this next episode of real estate prices falling will end the dream of ownership once and for all. People’s attempt to sell or hold and hang on will finally free them from this burden. If you are concerned about your real estate value, or worse yet, how you can afford what you already own then you are in trouble. It’s just a matter of time before reality hits you. It’s taking a lot to get people to release the illusion of security that real estate used to represent.