Today on CNN Newsroom

The latest news and information from around the world. Also connect with CNN through social media. We want to hear from you.
September 2nd, 2010
08:37 AM ET

Q&A Today: Investment or T-R-O-U-B-L-E?

Is your home a shelter, a roof over your head?  Or is your home the biggest investment you'll ever make?  Can it be both?  In uncertain economic times, property has traditionally been thought of as a hedge against other, more liquid types of investments.  In good economic times, property has traditionally appreciated. Today, however, is unlike the past.  So how does property fit into your life right now?  Richard and Ali battle it out to answer this question at 2pEST/1800GMT.

Filed under: Ali Velshi • Q&A
soundoff (2 Responses)
  1. Pam Smith

    I am curious about something. First, let me say that I watch you guys all the time. My husband watches that "other news show". Besides watching it for news, I love the neat fashion. Men and women both are so dapper and fancy. I watched Ali this morning on AM and while my husband and I were sitting at the table for coffee and my husband mentioned something about how nice he looked. I agreed, but also said that he's usually more colorful. (I love color). I went out for awhile and when I came back he was still on. I assume he was filling in and I'm sure he changed clothes into more color. You are some fashion dude, Ali.

    September 2, 2010 at 12:44 pm |
  2. Carlos Cardo


    As a REALTOR, I am always dealing with sales and interest rates. Your numbers were wrong in today's Q&A. Interest rates are not 4.5%, most are between 3.75-4.25%. Furthermore there are many home loan programs that allow you to still purchase a home with 5% to no money down and not the $30,000 you stated!
    VA Repos will allow NON-Veterans to purchase homes with no money down or investment properties with only 5% down!!!! – Holy cow Batman!!!!
    Furthermore real estate as you know is always local, but real estate overall tends to double in price every 8-10 years and unlike investment in stock, you have to live somewhere and either pay rent or a mortgage so either way you have a payment to make. The reason why real estate is a superb investment is that currently profits are tax exempt on the sale of your own home up to $250,000 or $500,000 a couple and and the majority of homes have hit bottom dollar pricing (again this is a local real estate issue)!!!! Not to mention the tax deductions you get EVERY year!
    Try that with stocks!..... but wait there's more.....
    If you buy $10,000 worth of stock and it goes up 1% you have made $100 (taxable income ***OR*** You can put $10,000 towards the purchase of a $200,000 home and if your home rises in value 1%, you will have made $2,000 (non-taxable profit) wich equates to a 20% profit form your initial $10,000 investment. Remember you have to pay rent or a mortgage so that monthly payment would be pretty much spent in any event!!! That is why real estate is a great investment, because you are getting an increasing equity (unlike a car) in something that you have to use .
    The very bad thing is when people choose to utilize real estate only as an investment property and do not know how to manage, repair, or make a proper financial decision on choosing a loan program. A lot of that occurred in the past 4 or 5 years, along with some buyer and seller dishonesty, risky investments, and other people in the real estate business that took advantage of the system and the market!!! The bottom line is that for most people, they make a house a home, and that home is used until it is sold as a house again and given time and maintainance an equity will be achieved and that becomes a profit for the homeseller! By all means, just like picking a doctor, mechanic, or contractor, choose your REALTOR wisely look at their accreditations and interview them! It is truly your money, investment and home!
    Have a great weekend!

    September 2, 2010 at 2:13 pm |