Sunday, November 26, 2006

Rust Belt Housing

Q: What is the safest investment you can make, outside of pork bellies and Beanie Babies?

A: Why real estate, of course. You get 4% avg. returng, and - year over year - real estate has never depreciated. Plus, you get all sorts of tax breaks and you build equity on money you have borrowed from the bank.

It's safe, sure: Unless, that is, you bought in the Rust Belt in the last several years.

http://www.freep.com/apps/pbcs.dll/article?AID=2006611260578

Note that the Rust Belt has not seen any real increase in values over the last several years like the Sun Belt.

Bottom line: If you are trying to sell today, you had better have money to bring to closing. The realtors are saying that the Detroit market is showing signs of recovery already. Sure, I believe them!

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