Investing in real estate a sure bet? Maybe not.

Everybody wants to buy a house eventually. While the time-frame to achieve this goal may differ for each and every one of us, we all hope to settle down one day. We may want to buy a house for social or economic reasons or both. Despite your motivation, it is imperative that we understand how real estate works as an investment and the returns it offers. When the time comes, it will be a significant decision that will most likely tie down most of your money; thus, we need to have a realistic and accurate understanding of how house prices will change.

Since the 1990s, house prices have increased at a staggering rate. As such, people have created this notion that owning a house is a tremendous investment -- many individuals even go so far as to say that real estate is the best investment out there. Is that really true?

I discovered an article released today (2 December, 2008) that discusses this very topic.

Click here: The Future for Home Prices

After reading that article, it seems as though ordinary people's perception of real estate contrasts with what credible economists believe. While the economists that made predictions in 1989 were incorrect about the trend of house prices in the last 20 years, we must concede that house prices were severely overpriced, leading to the real estate bubble that burst in 2005. Why it happened and what exactly transpired is another subject entirely. I won't go into that.

This post was written not to discourage you from buying a house. I am merely trying to provide you with the facts and discussions that will help you to make an informed decision when the time comes. There are many benefits to owning a house beyond its appreciation in value and I hope those are more important factors for you.

Comments and questions are welcome.

- Sean

P.S. It might not be a good idea to buy a house near the Hayward Fault in the near future btw.
Click here: America's 'most dangerous fault'