by Hank Wall
When home prices went south in 2008 it sent a shockwave through the nation. Everyone thought our homes would remain steady despite the economic ups and downs. Economist Michael Walden said that the decline in housing values which started in August 2008 was the first time in fifty years that real estate in the U.S. lost significant value across the board.
When your retirement is in part dependent on your home equity you can’t afford another dip in housing values. Likewise, you can’t put all your eggs in the stock market or mutual fund basket since those are even more volatile than real estate. Years of accumulated retirement funds might be at risk if the stock market plunges.
As a risk-averse “older guy” I have more confidence in Triangle real estate than ever before. This is a booming sunbelt region with years of steady growth projected. People are moving here for many reasons from many places. Triangle real estate value is gaining 5% annually on average and even more in some residential markets. If I can get 5% with very low risk of a real estate collapse I am feeling secure with my home’s equity.
I think of my recent home improvements as part of my investments. My wife and I will enjoy a very good return on these improvements, most of what we spent. Our home looks so nice after last year’s kitchen renovation that we may postpone moving to enjoy it another year or two. It will still look new in a few years when we decide to sell and we get to enjoy it week to week until we do move.
Investing in your home in the Triangle has big advantages. You enjoy your investment, unlike your shares of some company stock. Fluctuations in value are less likely. Raleigh real estate is limited and will continue to increase in value, especially closer to town. Living in the After (remodeled) version of your home will give you the feeling of success more than some up and down number called your net worth. Your home equity is increasing and is safe. Your home improvements benefit you now since your life enjoyment increases.
Call Wood Wise when you are ready to improve your home. We can help you enjoy your home as your personal refuge from the busy world and as a solid investment.