Is Real Estate a Safe Investment
Finance March 31st. 2011, 3:13amAfter the boom and crash of recent years, many people probably think real estate is no longer a safe investment, but it really depends on how you invest. It is true that values have dropped in half in many areas, and if you had bought a house as a speculative investment, you probably got into some real trouble. On the other hand, if you bought a home at the top of the market in an area where you could rent it out for more than your monthly outlays, you are sitting on a property that today is still making money for you every month. What’s it worth? It may not matter until you sell it many years from now, and at that point your renters may have paid off the mortgage for you. Positive cash flow makes real estate safe.