In the News
Housing boom slows
Regional new-home sales dip in quarter as prices rise moderately....
Why Invest in Real Estate?
History has proven that real estate is one of the most secure investments available. Owning real estate gives you stability, security and financial solvency. There are many reasons for this, here are a few:
Real estate is an integral facet of most major corporations and the affluent because it is an asset, not just paper. This is why it is called real estate.
Property values continue to grow even in hard times. An example of this is that from 1975 – 2005, real property increased an average of 5.9% per year, even during the worst recession since the Great Depression.
In long term investing, land does not decrease in value as it is a limited resource and it is not possible to produce more.
Appreciation
- Protection of your invested dollar against inflation
- Increased value of your investment, without taxation
- Increased value of your investment allows you to borrow money against these investments which is non-taxable.
One large office building in a city today is worth more than the United States paid for Alaska and the Louisiana Purchase. If a person would compute the cost of New York City, they would find the cost beyond our ability to pay. That is appreciation.
Looking back through time, there have been more wars waged and more empires built on real estate and the acquisition thereof, than any other single factor save religion, which also usually involved real estate in one form or another.
Growth is all around us. The people who sold and spent their money on items that depreciate may be in need. As we save money and invest it in appreciating items, we grow wealthy.
Hot Housing Markets:
Once again California and Florida dominated the list of the country’s hottest housing markets as determined by a federal agency that tracks resales of single-family homes.
| Market |
1 year gain |
5 year gain |
| 1. Las Vegas, NV |
36.2% |
84.1% |
| 2. Bakersfield, CA |
30.5% |
92.4% |
| 3. Reno, NV |
30.1% |
79.5% |
| 4. Riverside, CA |
29.6% |
112.1% |
| 5. Visalia, CA |
27.2% |
67.4% |
| 6. Palm Bay, FL |
26.3% |
85.9% |
| 7. Salinas, CA |
25.7% |
116.2% |
| 8. Los Angeles, CA |
25.2% |
102.7% |
| 9. Fresno, CA |
25.1% |
103.5% |
| 10. Santa Barbara, CA |
25.0% |
121.1% |
| 11. Anaheim, CA |
24.6% |
106.5% |
| 12. Merced, CA |
24.5% |
115.1% |
| 13. San Diego, CA |
24.4% |
119.4% |
| 14. Thousand Oaks, CA |
23.9% |
105.5% |
| 15. Yuba City, CA |
23.8% |
111.6% |
| 16. W. Palm Beach, FL |
23.4% |
94.4% |
| 17. Sacramento, CA |
23.2% |
111.8% |
| 18. Stockton, CA |
23.2% |
105.0% |
| 19. Port St. Lucie, FL |
22.9% |
97.3% |
| 20. Punta Gorda, FL |
22.9% |
92.2% |
** Information Source: Office of Federal Housing Enterprise Oversight
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