Real Estate...still the best investment
It may be premature to call it a trend, but over the last two weeks other Realtors and I have heard from a few buyers who want to invest in something solid. They've pulled money out of stocks to cut their losses and they want to invest in land or homes. On average a home will double in value every seven to ten years. Since many of us have just helplessly watched our retirements revert back to values equal to where they were twenty years ago, one may make a case for making a second home into an investment. It may be a passive investment where one enjoys spending time while the home increases in value. Most homes will achieve the average value appreciation while homes in growing areas (Gore Mountain for example) may exceed the rate of appreciation. It may be an active investment such as a home with rental potential or a home purchased strictly for rental income and no personal use. The best approach for you will depend on your tax bracket and income. When considering investment in income property, check with your accountant or tax advisor.