That is the question being asked throughout the economic world. The primary reason cited for the slow, stagnant or declining real estate market is “economic uncertainty”. Mention of the trade wars, the volatile stock market, the mixed indicators—consumer spending up, manufacturing down, inflation dragging or dead, etc.—are some of the many factors contributing to the buying trepidation. Could we lose in the long run by not purchasing property?
Consider the last several years. As owners, we have done “ok” overall as the average sales price across the country has increased by 2%. We can say that we did better than “ok” the last 10 years as prices have increased nationally as much as 15%! As purchasers, we are benefiting from historically low interest rates making affordability decent. It really does seem like a good time to buy, and to own real estate.
So why is our industry somewhat maligned? It could be the jobs landscape. Most people are working, it’s true. But most people aren’t saving enough in order to participate in the home purchase plan. Incomes are being consumed by health insurance, day care costs, and other normal day to day expenditures. Many people work multiple part-time jobs, or their full-time jobs lack the benefits help historically afforded employees. Also filling in part of this imperfect purchasing power picture are the socio-economic shifts in the workplace. We have a “gig economy” where people work short term, full-time jobs. We have a “remote” economy where technology helps people conduct business from anywhere. We have an “organic” economy where people are fulfilled in low paying jobs that are more earthly and worldly in consciousness. So by not owning property do people lose in the long run?
Because we can do more than just live in the property that we own, it is my opinion that owning is one of the best ways to become wealthy, to accumulate and maintain wealth, and to ensure future income. We win in the long run by owning property. Be a winner—OWN real estate!
