When the going gets tough, the tough buy assets and Real Estate is one of your best assets. People might go bankrupt, companies can go out of business, but real estate is always a solid investment. Its not a short term investment, but over the long term, real estate will generally pay you a solid return on investment. The price of a home may go up and down, but it will never go to zero. A Lehman bond is now worth nothing and a share of Fannie Mae or Freddie Mac is no longer safe. But a home that used to sell for $400,000 might be bought now for $375,000 or less, but not zero.
Sometimes the best investment is in something you can understand and use on a daily basis. Whether your real estate investment is a primary residence, a vacation home for your extended family and friends or an investment property, a scary market creates opportunities. This market might mean a chance to buy that second home you couldnt afford back in 2005. It could also provide an opportunity to purchase your future retirement home at a bargain price. And once again, you can actually find an investment property in a desirable area that will generate positive cash flow.
Boomers are in the best position to benefit from an investment in real estate. Typically, Boomers have good credit scores and dont need 100% financing. As Boomers near retirement age and consider where and how we want to live, investing in real estate for the future just makes sound business sense.