While the real estate market sure has it’s share of troubles and concerns, I do know this: Real estate, over the long term, is one of the very best investments one can make. Tax benefits, the opportunity to create a home, instead of paying an investor’s mortgage (renting), pride of ownership, and equity building are just some reasons for home ownership. I believe we are entering some of the darkest days before things will rebound, and before we see appreciation.My Mom and Dad paid $12,400 for their Cape Cod style home on Alton Road in Mercerville 50+ years ago. I remember when the value went over $100,000, everyone commented how they should have bought 2. (They scraped and scraped to afford that home). Values eventually soared over $200,000, then $300,000, now who knows, perhaps a shade below $300,000.
They were able to (conservatively and wisely) borrow against the home on occasion, using their equity for different needs. The memories of holidays, parties, and having fun with friends will last forever. It was home.
Now, as things are getting darker for real estate, I find comfort in knowing that our most densely populated State will always help keep demand high for housing in New Jersey. Low unemployment and decent rates will keep this market moving.