Is South Florida Real Estate A Good Investment?

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February 23, 2010

Is South Florida Real Estate A Good Investment?


Is buying a home a good investment?  Should I instead put my money in the stock market that seems to be rebounding?  These are all questions that potential buyers are pondering as they sit on the real estate fence concerned if their real estate investment could be a profitable investment.

I recently read an article by MSN that studied the period from the beginning of 2000 to the end of 2010 of the stock market versus the real estate market.  Above, please see their chart proving that real estate is the best long term investment.

If you would have invested $100,000 of your hard earned money in the Dow in 2000, you would have lost $5,000 and now be left with $95,000.  Think that is upsetting, then take a look at the S&P 500.  If you would have invested that same $100,000 in the S&P 500 in 2000, you would have taken a $20,000 loss and be left with only $80,000.  Worst of the bunch would have been the NASDAQ.  Invest your $100,000 inheritance in technology stocks, and you would have lost 40% of your money and only have $60,000 left to show for.

But despite all of the media buzz of the crash in the national real estate market in the past five years, if you would have taken the $100,000 and invested in the real estate property in January of 2000, you would have made $50,000 by the end of 2009 and have $150,000 in your pocket.

Of course, real estate is not like the stock market!  If you are looking for a quick return on your investment, then real estate is not for you.  But, if you are looking for a long-term investment with excellent returns, real estate is and always will be the best return on your investment for you and your family.

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If you are interested in buying or selling a real estate property in Parkland, please give us a call at 954-609-0591 or send a note to the squawk.