Posts Tagged ‘stocks’

The Stocks Are Tanking: Here’s Where To Put Your Money

Wednesday, October 15th, 2008

Today, the stock market fell, again. How in the world will people make money if they keep losing it? The fact is, the financial markets are horrible and they are shaking even the most seasoned professional investors. So, as an individual with money, where should you put it?

One option you do have is to put the money towards a home investment. Buying real estate now just makes sense. In some areas of the country, the value of real estate has fallen 10 percent, 25 percent or as much as 50 percent. The good news is that the homes are still as highly valued (outside of the financial sense.) Buying a home now can help you safely invest your money. Consider the following.

Let’s say that in your area you invest in a home selling at $200,000. You secure a home loan at 6% through the FHA with a fixed interest rate. You put down $6000, which is the minimum 3% investment the FHA requires as a down payment.  You have a $1200 mortgage payment.

Over the next few years, the home continues to rise in value, as many real estate investors believe that this is the bottom and that housing values will continue to rise. So, in 5 years, at just a 3% gain in value per year, you could have a home valued at nearly $220,000. This would be a low gain, but a safe one.

As you can see, socking your money away into a home loan could make you a sizable profit over the long term. But, even as the market stays well priced, your money is safe. It is not going anywhere. Even if property values fall, you will still be making money in the long term. There is no telling what the future of the stock market is today, but there is only so much real estate available.  It is one of the safest loans.

Do You Qualify?

To get into a safe loan, do consider FHA loans. These loans are the most well priced homes you will find in the coming months. They offer a low down payment. They also provide you with a low interest rate that is fixed for the life of your loan. Those with credit scores that may be slightly low may still qualify for these loans. There are just so many options available.

It is your money and no one wants to lose their money. When you invest in real estate, you do not put your money on the line with investors who may or may not be too scared to allow the stock market to grow. Rather, you have a security at a very low rate. That home you bought for $200,000 was valued at $250,000 or even higher just a year and a half back. As the housing market picks up, it could be back at that level in just a few short months.  For most, this is an option for you.