Thursday, December 6, 2007

Myth - Housing is a Low Risk Investment

Moody's states - "Housing markets from Punta Gorda, Florida, to Stockton, California, will crash and suffer price drops of more than 30 percent before the housing crisis is over"
Risk management - Every investment carries a risk. Housing fluctuates less than the stock market but can incur a substantial correction. The only sure risk mitigation strategy is knowledge. Understand your investment asset - what is it, how does it work, why does it make money, what is it affected by, when to buy and when to sell.

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1 comment:

Rockey said...

LONGTERM nobody has ever lost in California Real Estate. It is still a great LONGTERM bet and if you have been holding out on purchasing a primary residence, DON'T. If your holding out for an investment certainly not yet.