The Wall Street Journal, September 12, 2002
"The price of waterfront property is growing faster than ever - 20% or
more a year. That's about four times the rate of landlocked homes...
...as recently as five years ago (oceanfront) prices were growing only 10% a
year. Now, between dot-comers of the 90's and the more recent stock market
refugees, they're rising at twice that pace..."
USA Today, June 3, 2002
"Homes as investments. Major stock market indexes declined in each of
the past two years, and they’re poised to three-peat in 2002. Meanwhile, home
prices in every market have been chugging strongly upward…
…Rising home values themselves have provided seed capital for investment in
second homes. As market values rise, homeowners can borrow against equity in
their primary residence. Rising values also permit them to "double
down" sell one home for the purpose of acquiring two.
Selling one home to get two has been particularly attractive since a 1997
change in the capital gains tax law. Since then, a married couple has been
allowed to take tax-free up to $500,000 in profit from the sell of a primary
residence."
Forbes, May 22, 2002
NEW YORK – "While investors combed the stock market over the past two
years, desperately looking for value or the next big thing, the safe money
headed home.
Spurred by the lowest mortgage rates since 1993, Americans purchased 6.2
million homes in 2001, setting record sales for both new homes – 909,000 –
and existing ones, at 5.3 million. The mantra stood that homes were the best
investment going."
Reality Times, February 7, 2001
"According to recent statistics published by the U.S. Census Bureau, 75%
of multi-family investors are over the age of 45. Over half of these (51.6%) own
less than five units, and they earned approximately 31% of their income from the
ownership of rental properties."
