Below is a summary of an article written by Lawrence Yun for Realtor Magazine. Yun is Chief Economist & Senior Vice President of Research for the National Association of Realtors.——————————————————————————-
-Turn on the TV this week and you’re likely to hear continued coverage on the decline in the housing market leading many to believe that the problem of loosing money on real estate investments in America is widespread. Not so, according to Lawrence Yun. He says that someone who purchased a property in Las Vegas five years ago would be ahead by $150,000 today, by $200,000 if he purchased in Miami, and approx. $54,000 on average in the US as a whole. According to Yun, the amount of Americans who are suffering losses only amount to about 1- 2% of homeowners who purchased in a few specific markets that overheated during the boom. Consumers who invest $10,000 as a down payment on a typically priced home will net $110,000+ over the course of 10 years. Invest that same $10,000 in stocks and you’ll likely to return only $23,600. Purchasing real estate with the plan of holding on to it for a reasonable period of time continues to be a sound investment and is what creates the staggering difference in average net worth between home owners and renters.
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