Re: CNBC’s Real Estate program - Posted by Ronald * Starr
Posted by Ronald * Starr on August 18, 2001 at 20:17:44:
Doug (ON)----
Thanks for the reference. I read it over.
Well, that kills the speculation that we could learn something that would help us make money with real estate. What a misleading heading.
There were no ways there to invest in real estate. They mention four ways to invest in stocks related to real estate: REITS, Mortgage-holding institutions: companies that own huge portfolios of mortgages such as Washtington Mutual Bank, and such institutions as FNMA, and they don’t even mention it by name,and stocks of new home builders. They may be ok investments, but they are investments in stocks, not in real estate.
Then they recommend owning your own home. Since 68% or 69% of Americans already own their own homes, what kind of screwy advice is this? Most of those who do not own homes probably don’t want to or can not afford to do so, so how is this recommendation supposed to help them? In fact, for the people who could afford to invest and use the information provided, probably 90% already own their own homes.
And I don’t recommend that people should necessarily own the home where they live. Economically, it is usually cheaper to rent in an up-scale neighborhood than it is to own. Emotionally, some people would prefer to own anyway, even it is not the best approach financially. Instead of sinking money in an expensive owner-occupied home, invest in lower-cost rental properties. The returns will be greater than owning a high-cost home, if done properly.
A misleading heading. A truly disappointing source of “investment advice.” Worthless, in my opinion.
Good Investing and Good Ignoring the Media NonsenseRon Starr**