It depends. Tying up all your cash in owning homes outright can limit your options. In addition to that, mortgage money is cheap right now so you may be better borrowing and then investing your money to get a higher return. It doesn't take much of a return in the market to outstrip what you would pay in interest on a loan... more
I invested heavily in 2003 here in SW Fl. I was brilliant until the crash, however in hindsight, we should have seen it all coming. The bottom was hit last year and you should have bought then. We cant identify a bottom until it starts to recover. Never the less, It is still it great time to buy, due to the fact that, like Gold, Real Estate has intrinsic value. We will someday see the effect of the Fed's printing press on the US dollar and when inflation ineveitably rears its ugly head, things that have intrinsic value will increase in dollar denominated terms, not that they are getting move valuable, but rather the dollar is loosing its value. so for the long term, Yes buy something that is in limited supply and enjoy its long term rise against Fiat currencies.
I specialize in Cashflow investment properties that return a good ROI now, but offer a huge hedge against inflation in the future. Feel free to call me with any questions
Tarpon Coast Realty
1693 Main St
Sarasota Fl 34236
800 376-1408 fax