Your home is still the best place to put your money
Oct 10, 2011, at 9:00 am by Lou Manfredini
We have spent the past 2, maybe 3, years hearing about the collapse of the housing market. Every day we hear about the bad numbers in the market, high unemployment and just general bad news about our economy.
Well, I would like to offer some advice: Stop watching the news, reading the newspaper and going on the Web (except for this blog). We have become too focused on the daily changes in everything in our lives. Remember when we thought getting a fax was really fast? Now it’s an email to our smartphones.
The key to success in everything is long-term commitment. Whether it’s your career, your relationships or even your home. (See how I brought that back to housing?)
Seriously, while so much of the news is bad, there are still positives to pull from. The three sectors in our world that we will all need forever are food, clothing and shelter. Your home is your shelter, and yes, it has lost value and if you have to sell, that will have a direct effect as to the amount of money you get to keep. But when you go to buy your next house, that one will have lost value, too, so in essence we are trading dollars.
That means that keeping your home up to date has never been more important. You will see stories about how kitchens and bathroom updates or remodels do not retain as much value as they did in the past. Bully! I would argue that the numbers they reported 5-7 years ago about the worth were inflated, just like property values.
Update your kitchen, your bathroom, your windows. Finish your basement. Your home will be worth more, and you will enjoy living there more, as well. In particular, if you plan on staying in your home for the next five years, investing in the overall look and feel of your home is a great place to put your money. No stock broker needed!