By Nancy Puder

Even with periods of instability, real estate still remains the most sound investment you can make.  This is a proven fact regardless of the recent recession where many people lost their homes and prices fell dramatically.
While I would never try to minimize the trauma of a foreclosure or short sale, it’s important to emphasize that during this past recession, where foreclosure and short sales were the norm, 30% of homeowners in the United States were unaffected because they owned their home with no mortgage at all.  
As with any investment, the real estate market will rise and fall over time. The majority of people who run into trouble are those who obtain a larger mortgage than they can afford, make uninformed decisions regarding the terms or their mortgage, or have a life-altering situation that forces them to sell their home at the wrong time.
If you don’t believe me, ask an old-timer what he paid for his house. Often you will hear numbers like $60,000 or lower.  Then ask them how much his father paid for his home.  The number will probably be around $10,000-20,000.  Today many of these homes are valued between $500,000 and $3 million.
Even in a down real estate market, you can see that these homeowners not only retained stability and kept their homes, but they now have a large amount of equity to fund their latter years or to provide for their children.  One old-timer would remind us that the tortoise ALWAYS wins the race!

Nancy Puder is a real estate broker with Nancy Puder & Associates, the premier real estate boutique company in Arroyo Grande, CA. Nancy Puder is one of the largest listing brokers on the Central Coast. Call or text Nancy (805)710-2415 with your real estate questions anytime. She always enjoys hearing from you!  To access other articles written by Nancy Puder, go to: www.nancypuderassociates.com.  Readers can also email to: [email protected] with questions or to discuss their own real estate.