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Betting the house Many homeowners are aking themselves wheater they should cash in on recent real estate gains and rent for a while. But we are definitely in an unusual period. Over the past five years, for instance, home price have shot up 5% a year in real after inflation terms versus a long term historical average of only about 1.5%. The unusual gains suggest to some people that we're in the middle of a real estate bubble. But does that mean we should all sell our homes as fast as possible to take advantage of inflated prices? Not so fast. Home ownership is not only a financial decision but a lifestyle choice. Owning a home gives you the security of knowing you don't have to move. It's very difficult to find a home that you can rent where you like. The fact is that people who own homes tend to develop their net worth a lot faster. Part of that is because home ownership is kind of a forced saving plan. It forces people to save and invest.
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Real Estate Services / Betting the house