Is Real Estate Really A Good Investment?

The answer might surprise you. Real estate is a solid investment in the long run, but it doesn't outpace the stock market and other investment opportunities. Throw in the outrageous property tax rates of some areas and the investment grows a little less attractive. So, why is real estate touted for investment purposes? There are two primary reasons. First, most people don't have the discipline to invest in the stock market month after month. If you have a mortgage, you are forced to pay that monthly mortgage bill, to wit, involuntary savings. The second reason has to do with concept of real property versus financial documents. If the value of homes drops 80 percent, you can still live in your home. It is real property, to wit, a roof over your head. Stock certificates, on the other hand, don't make good building material. This is particularly true in the rain! In the long run, real estate is a good investment because it combines a number of necessary elements.