Your Home As An Investment, Is It a Good One?

Is real estate a good investment?

The article that follows brings up a very interesting point about real estate. Most people buy real estate for their personal use, while also considering it an investment.

In comparison, stocks are strictly investments and do not provide any other tangible benefits like real estate that you can live in, raise a family in and enjoy your life in.

When comparing real estate to the purchase of other items for personal enjoyment, such as cars, boats, jewelry, etc..., real estate over the long-term appreciates, while those other items lose their lustre and depreciate in value.

When considering the investment side to real estate, I like the analysis made below. Check out how certain stocks compare to real estate over the last ten years approx.


Via Jim Frimmer, Realtor and CDPE, Mission Valley, CA DRE #01458572 (Century 21 Award):

Is real estate a good investment?

Real estate is often compared to stocks and bonds to determine which is the better investment. Unfortunately, people who were buying real estate a decade ago thought that their real estate WAS a stock or bond, and they tried to time it right when they were buying and a couple of years later when they were selling.

REAL ESTATE IS NOT STOCK!

But it is an investment, an investment in your life and that of your family.

If your intent is to buy a home to live in, raise a family in, retire in, and perhaps even die in, real estate is a great investment, regardless of when you buy.

If you bought a $100,000 condominium in San Diego County in January 2000, you would have a condo valued at $154,000 today. That's even after the enormous valuation increases in the early 2000s and the enormous valuation declines in the late 2000s.

Stocks, on the other hand, are hit and miss, as we can see in the following examples. If, on January 3, 2000, you bought $100,000 worth of shares in:

* Apple, you would have $359,230 today.
* IBM, you would have $141,655, still not as good as your condo.
* Walmart, you would have $79,643.
* Microsoft, you would have $59,388. Whoever thought ten years ago that Microsoft would be anything but the biggest and the best.
* AIG, you would have $22,051 today.
* Delta Airlines, you would have $14,440 today.
* Lehman Brothers, you would have $0.00 today. They don't exist anymore.
* Borders Books and Music, you would have $0.00 today. They are in liquidation.
* General Motors, you would have $0.00 today. They went bankrupt. Of course, you could have bought some of their new shares when they came out of bankruptcy.

I tried to make that portfolio somewhat diversified — technology, retail, insurance, travel, auto — to help cover some losses, but as you can see, real estate held its own versus the stock big boys.

I included stock splits, although there was only one that was relevant for the time period. I did not include dividends, but I also did not include the significant tax advantages of owning a home, not to mention that you were living in it and enjoying the American dream!

Lovely Executive Home in Downey for only $450,000

Arlene Garcia Hanner | Real Estate Broker | garciahanner@yahoo.com | (562) 862-8943 10224 Laurelwood Lane, Downey, CA Downey 4 bdrm home in Gated Community 4BR/2+1BA Single Family House offered at $450,000 Year Built 1990 Sq Footage 2,456 Bedrooms 4 Bathrooms 2 full, 1 partial Floors 2 Parking 2 Car garage Lot Size 4,791 sqft HOA/Maint $95 per month DESCRIPTION Wow... This well-maintained home is a must-see. Mrs. Clean lives here! Located in a private, gated community amid lush landscaping, this home has just about everything you want. Elegant front hall entry leads to a spacious living room with fireplace, family room or additional dining area with wet bar, enormous kitchen with plenty of cabinetry to store all your goodies. There is also a formal dining room, separate laundry room, downstairs bath and indoor access to garage. Upstairs, you will find a huge master suite with walk-in closet, an in suite bath with spa tub, separate walk-in shower, and dual sink vanity. Off the hallway, you will find an additional 3 bedrooms and full-sized bathroom with double sinks and private tub/shower/toilet area. All this and more to see... Don't miss this gorgeous home! see additional photos below PROPERTY FEATURES - Central A/C - Central heat - Fireplace - High/Vaulted ceiling - Walk-in closet - Tile floor - Family room - Living room - Dining room - Dishwasher - Stove/Oven - Microwave - Laundry area - inside - Balcony, Deck, or Patio - Yard - Jacuzzi/Whirlpool COMMUNITY FEATURES - Garage parking ADDITIONAL PHOTOS Photo 1 Photo 2 Photo 3 Photo 1 Photo 2 Photo 3 Contact info: Arlene Garcia Hanner Real Estate Broker garciahanner@yahoo.com (562) 862-8943 For sale by agent/broker Equal Opportunity Housing Posted: Aug 24, 2010, 11:47pm PDT

Downey Farmer's Market

Downtown Downey has a Farmer's Market on Saturdays.

Location: Second Street at New Avenue

Time: Between 9 am and 1 pm, every Saturday

Fresh fruit and vegetables, goodies from Porto's Bakery, fresh flowers, can be found here. Great destination for a morning stroll around town.

Plenty of parking available:

• Street parking on Downey Avenue, New Avenue, La Reina
• Municipal parking structure and parking lot on 2nd street and La Reina

Downey 3 bdrm / 2 bath Home for Lease

Newer 3 bdrm / 2 bath home in Downey with custom maple kitchen cabinetry, granite countertops, decorative tile flooring, indoor laundry, 2 car garage. This nice home is close to Downey Landing and movie studios, shops, restaurants, and major freeways, 5, 605, 105 & 710. Available September 1, 2008. Please no pets or section 8. $2075.00 a month with lease, on approved credit. $2800.00 security deposit. Call Arlene (562) 904-4325.

8838 Coffman Pico Road (SOLD)

What a deal! This lovely 3 bdrm home is now in escrow, but there is more available. I am just a phone call away:

(562) 904-4325

Arlene Garcia Hanner, Broker

http://www.socalagency.com/

Pico Rivera Home (SOLD)

Arlene Garcia Hanner Real Estate Broker 562-904-4325 $389,000 8838 Coffman Pico Road, Pico Rivera, CA Pico Rivera, California 3 bedroom home for sale 3 Bdrm Single Family House Year Built 1952 Sq Footage 1,018 Bedrooms 3 Bathrooms 1 full, 0 partial Floors 1 Parking 2 Car garage Lot Size 5,400 sqft HOA/Maint $0 per month Only $389,000 Wow.... Only $389,000!!!! Lovely 3 bedroom home with gorgeous stone fireplace in living room, large backyard with built-in barbecue, indoor laundry, detached 2 car garage. Nice area of Pico Rivera, close to Pico Rivera Towne Center shops, restaurants, and schools. Contact Arlene Garcia Hanner, Broker (562) 904-4325. For more pictures, see www.SoCalAgency.com PROPERTY PHOTOS OTHER SPECIAL FEATURES Indoor Laundry, Central Air Conditioning, Ceramic tile Flooring in Kitchen & Dining Areas, Wall to Wall Carpeting in Bedrooms & Living Room. ADDITIONAL PHOTOS Seller contact info: Arlene Garcia Hanner Real Estate Broker 562-904-4325 http://www.socalagency.com/ Equal Opportunity Housing Posted: Sep 10, 2007, 2:01am PDT

Downey Scholarships Available

Do you have a high school senior at home with lots of potential but little money for college??? Get him or her to the attention of the Downey Association of Realtors. Scholarship applications are being accepted from graduating seniors at Columbus, Downey and Warren High Schools and also from students receiving their GED at Downey Adult School. Applications will be accepted until March 2, 2007. Students should visit their guidance counselor for information or visit www.daor.com for an application.