Buying a home in Springfield & Burke has traditionally been considered a sound real estate investment. Some would argue that it may even be a better investment than stocks! Now, second homes and rental properties aside — we’re talking about homes you plan to buy to live in yourself — the purchase of real estate isn’t just an investment financially; it’s also an investment in yourself.

There are a few important milestones that mark the significant moments in our lives — like college graduation, starting a new job, or getting married. Buying a first home is high on that list. It’s a major aspiration, a worthy goal, and, when accomplished, an achievement that brings  unique satisfaction. 

Due to the specific risks associated with real estate investing, it might not make sense for everyone, but when it is appropriate, it can mean great stakes for you. 

It may be a top investment pick, but real estate should never be mistaken as a safe bet. While it can yield great rewards, real estate investing does have associated risks. And it may be because of those risks that it can lead to a journey of self-discovery. 

Because before you take the plunge on such a major purchase, it is important that you square away answers to a number of very serious real estate investment obstacles.

Top Real Estate Investment Obstacles to Know

But the Real Estate Market Is Unpredictable!

True, the real estate market isn’t always stable. Historically, however, real estate values have tended to rise. 

Who doesn’t know someone (or know someone who knows someone) who bought their home decades ago for less than $100,000, while now it would sell for many times that amount? To be fair, this escalation of home pricing may be a bit more about inflation than value, but if you are in the real estate investment for the long haul, you don’t have to worry (as much) about the sharp downturns that occasionally rock the financial world, and you are better able to weather the hard times — so that you can later enjoy the good times.

Depending on your risk comfort, buying a home is a decision that could appreciate, both in home value and returns on confidence. 

But I Won’t Be Liquid For Other Investments! 

Traditional investments, such as stocks, bonds, and mutual funds may be easier to buy and sell at times — and under circumstances — that are likely to maximize your real estate investment return. But liquidity isn’t everything. 

A down payment on a home, not to mention monthly mortgage payments and all of the additional costs that come along with property ownership can certainly knock a big hole in your savings and future earnings. And you may have to make some tough decisions about which investment makes the most sense for your financial situation right now. But know that homeowners do enjoy significant benefits as a result of their real estate investment. 

Meant to put a roof over your head, the property can also serve in the future to provide passive income, and it immediately brings tax advantages, diversification, and the opportunity to build wealth.

Also, keep in mind that borrowing against your home’s equity can help you to raise capital for other endeavors. Owners can use the equity built up in their homes to finance education for children — or themselves. This literally makes real estate investment an investment in you. 

But Homes Require Upkeep!

Yes, a homeowner will be responsible for any and all maintenance issues that arise. But it’s actually a homeowner’s lifestyle that will factor into whether homeownership is worth it. 

Plus, most models demonstrate that paying property taxes, insurance, landscaping, or any and all other home maintenance, is likely to still cost less than renting in the long term.

Owning a home means more than just having a place for you to lay your head, enjoy the yard, and showcase family photos. A home is a very real financial asset that is a major chunk of most people’s net worth. And that can be a frightening hurdle to face. 

But when investing for the long haul, if owners have thoroughly researched their property and the surrounding area before taking out a mortgage, they can reasonably expect their property value to appreciate over time. And throughout the process, what they learn about themselves, gain from the experience, and eventually can borrow against capital makes it a personal real estate investment as well.