This is a graph of sold $ per s.f. in the Seattle metro area over the last 9 years. The sold price per s.f. in 2nd quarter 2011 is 32% higher than in 2nd quarter 2002. That’s appreciation, folks. So, why not invest in real estate for the long term rather than suffer the uncertainties of the stock market?
If you have cash parked on the sidelines while the stock market roils, or if you are hatin’ the idea of 1% bond yields, consider buying a small home to rent out. It will generate income and tax deductions as an investor, plus you can be reasonably certain of appreciation over the log term. If you want a loan to leverage your cash, the rates could not be better. Prices and sales terms are favorable, too, most especially for homes owned by Fannie Mae/Freddie Mac.