A portfolio of commodities


By Kathy Henne



Have you ever thought of a home as a commodity? A commodity can be defined as a raw material or product that can be bought and sold. A home is not a raw material, but it is certainly built out of many raw materials, like a box full of wood, steel, cement, and glass.

Over the long term, home prices usually rise along with the cost of the commodities it takes for their construction. While high inventories of homes may keep prices lower at times, the cost of the raw materials that are intrinsically tied to a home’s value are rising, and rapidly.

With increasingly higher construction costs always on the horizon, buying now is an ideal investment, and a hedge against the rising cost of commodities. Every home is a store of value for all the materials, the land and the labor involved in its construction. So the long-term value of a home is tightly connected to the cost of its production, making it a very different type of investment from stocks or bonds.

Investing in commodities has always been a great way to make lemonade from the occasional lemons. And what better way to buy into the commodities market than by purchasing a home? Home prices will be pushed higher by the rising cost of raw materials and the pent-up demand that has built up, so make your move now!

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By Kathy Henne

Contact the Kathy Henne Team RE/MAX FINEST by calling (937) 778-3961.

Contact the Kathy Henne Team RE/MAX FINEST by calling (937) 778-3961.

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