In the Peter Lynch book I'm reading, Lynch writes that houses are normally more rewarding than stocks. Especially primary residences with all the associated tax breaks. However we also routinely recommend that people put money in stock-based IRAs and things as early as possible - well before the person can afford a home. Personally I disagree with Lynch here. You might as well invest in stocks as you build up capital to buy a house. Sure it carries more risk than putting money in the bank each month, but there's a good chance you'll be in a better position to buy a home thanks to investing early and often in life.
Posted by James Trotta at November 12, 2006 10:35 PMNot necessarily today. Do LOTS of research about the stability of the area you want your home to be in.... homestaed, tax write-off . . . long term I love my property and it's location.... I've noticed it's holding ground while others are slipping...
Some equities are money in the bank while the housing market dettles (IMHO). There is an argument for renting in some areas and holding equities for a few months.
I find the FXE is a sure bet (long euro), but expensive (144.)) +- (wasn't watching today).
RIO has done a great job for my portfolio over the past few days... but I should say, I also have a house that is pretty stable in price.
Just always stay on top of the indicatiors and DIVERSIFY to cushion yourself!
Have fun!
Posted by: LeDee at December 6, 2006 4:46 AM