Caudium Info

A lot of us grew up hearing our parents incessantly reminding us that, in their opinions, the best possible investment was a home. That conventional wisdom has, of course, been dramatically altered by the ongoing home mortgage crisis.
An awful lot of people bought houses at the peak of a land boom that many so-called experts inexplicably argued would never end. For these unfortunate folks, purchasing a home turned out to be the worst possible “investment” imaginable. For untold numbers of would-be homeowners, the result was bankruptcy and, in too many cases, destitution and homelessness. Of course, today housing prices are substantially lower than they were just a few years back and now may well be a good time to buy — but not for everyone and not for everywhere.
The fact of the matter is that, for a large number of us, this is still not the time to purchase a home. If we’re not absolutely certain we’ll have the money to make up the difference between our present expenses and a mortgage, it’s much better to make more efficient use of the space in our present houses and apartments by adding bunk beds and lofts than spending the money to move to a larger home.
Indeed, more and more experts are telling us to stop thinking of a home as an investment and to start thinking of it more like a simple purchase. The logic is simple enough. Yes, homes in many areas are now purchasable for substantially less than before and they will, over time, very likely rise in value.
The key words, however, are “over time.” The fact of the matter is no one knows how many years, or decades, it will take for the U.S. housing market to “come back” and no one knows just how much of a comeback it will turn out to be. That uncertainty means that, if you buy a house, you should assume its value will not rise by much any time soon and that, indeed, over the short term, it might still actually fall somewhat. If this is a scenario you can’t afford, or if you’re not certain you can keep up the mortgage payments indefinitely, buying cheap bunk beds may well prove to be the best investment you can make.