Real Estate in the USA has been in a troubled position since the 2008 ‘bubble burst’ nationwide. Millions have lost their homes or have simply stopped paying for them.
When I was in my twenties I remember studying economics and the textbook listed Real Estate as a ‘risky’ investment. I laughed. All I had ever seen was that most of the people I know made most of their money from real estate. No matter what you did for a living, it was your home that had had equity the would become your parachute into retirement.
Today I don’t see that happening form many that still owe the majority on their mortgages. Most of these people that are not on the financial Arc of a paid for home, struggle financially and motivation-ally to continue paying on these still huge mortgages.
I bought a home in 2011 and it’s already lost 8.5% of value since I bought it. My situation is is just one example of what is happening to tens of thousands of new home owners in America. Do we struggle to pay them off when there is a good chance that once it’ is paid off it will be worth half of all the cash we dropped into the money pit?
I don’t know what the answer is here. With the Euro Union about to implode, with socialism and communism growing in the USA, what will happen to the economy and what will happen to the American Dream of Home Ownership?
Will the government nationalize all the real estate and put two families into every home?
OK, maybe I went too far there. Most probably not, but even if home ownership is protected, what will the value of it be in constantly falling valuations? I recently heard that all of the ‘smart’ real estate investment money is still on the sidelines. What are all of us ‘stupid’ money investors to do? What are the alternatives?
So as we watch the destruction being carried out over the Euro and the World Bank and the dark and shady characters the have assumed control without being elected, we wonder. We wonder if the Great United States of America has dodged the socialist bullet that is destroying Europe, of if we are the next great society to fall.
For now I will remain optimistically eyes wide open. Patriotically critical and watchful of Washington DC. Hopefully committed to America and the American Dream. And defiantly stupidly paying my mortgage, because I still believe we can right this ship.
PS: Oh yes, and I pay my taxes and so do my companies. And none of it accepts handouts from the government of other peoples tax money. Call me old fashioned.