Is your home still a good investment?
If you answered no, well you are still in the minority.
A majority of Americans - 57 percent - not only believe buying a home still has potential as an investment, but that it's a better bet than the stock market or putting money into a retirement plan, according to a recent Fannie Mae survey on home buyer and consumer attitudes.
In a presidential election, they call that a landslide.
Now if you take a long-term buy-and-hold view - say 20 years or more - it's hard to argue you are going to take a big hit on your home, unless you are in Detroit or some other particularly hard-hit metro area.
But if you are banking on your house to fund your retirement, you may wind up sorely disappointed, especially if you have the misfortune to see the market tank just as you approach 65. Just ask all the would-be retirees out there who are still camped out in the suburbs, faced with having to take a deep reduction on that big house they raised their kids in order to move on with their lives.
Other scintillating findings from the survey include:
- Americans still believe homeownership is a safe financial investment, though the number has dropped to 66 percent, down from an amazing 83 percent back in 2003.
- The number of underwater homeowners who think it's OK to walk away has doubled since January 2010 and now totals nearly 27 percent of those who owe more on their homes than what they paid for them.
- 44 percent believe their home is now worth 20 percent more than what they paid for it. It's an astounding number given that home prices, nationally, have fallen nearly 30 percent from their peak. Still, that's down from 51 percent in January 2010.
What's your take? Where does your house figure in your retirement plans?
