Your Home is your Castle

One of the current problems I'm seeing in the real estate market is the mind set that people's homes have become viewed as investment vehicles. True, a home is an investment, and for most families it is their largest. In the recent past, homes appreciated at such a rate that some were able to buy a home, live in it for a year or two and then sell it for considerable more than they paid. Home values now are down from their high in early 2006 10,15, even 20% or more.

A home is first and foremost a place to live, raise a family and as a place of refuge at the end of a day of work. If a home is taken care of and updated as needed to keep it current with the better homes in the neighborhood, it should and often does increase in value. Historically, homes increase at a rate of between 3% to as much as 7% per year. This is not a guarentee. In 2002, 2003, 2004 and 2005, homes rose in value anywhere from 8% to as much as 15% and more per year and in many but not all areas. This was above the averages and so they are now retreating. It's a painful process for some. For many who bought a home since 2005 and thought they could count on an increase in value, the reality has been harsh. Unless you bought a fixer upper or a gut rehab, most homes have come down in value since 2005.

It's time we all got back to the notion that a house is a home not a means of getting RICH! As my title says, your home is your castle and nothing more.