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For Sale: Homes on the Moon!

When the media is constantly droning on about the decreasing value of homes, it’s hard and sometime scary to think about owning a home. It can be a big decision to make and you certainly don’t want to toss around your reputation, credit, and money without precaution. Wouldn’t you feel more comfortable about making an investment into a home if you knew for certain that the value of your home would always be increasing? Of course you would be! That, of course, is not the case. As I always say, there are risks to making an investment in ANYTHING! And it IS true that current home values are below what they were a few years ago.

However, there have been MANY times in even recent history when you could have said “my home is worth less than what it was a few years ago.” But go back 10, 20, 30 or more years and compare home values then to current home values. Your home (or soon-to-be home) is almost certainly worth MUCH more now. In other words, there ARE ups and downs in the real estate world, but real estate values in the long-run have ALWAYS increased for all but the rarest of places.

Let’s compare real estate to gold: if it were of infinite supply, it’s value would be almost nothing; since it’s not unlimited, it is valuable. But does that mean that the value of gold never falls for a period of time? Nope! Gold has its ups and downs, too. And just like gold, there is only so much land where real estate can be built. Unless they start building homes on the moon, the scarcity of land is on your side! With this in mind, in the long run there will ALWAYS be increased value to you for holding a portion of the limited supply of the space we have.

This value is enhanced even more if you can locate areas of even more scarcity (property with shoreline, homes in nice metropolitan areas, etc.) Don’t worry about the ups and downs of the real estate market, over time the ups prevail over the downs due to the scarcity of the precious space you own!

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