Record foreclosures over the past couple of years have made people think twice about buying a home. The fact that many people lost their shirts in real estate means that real estate is an extremely risky investment, right?

Well, it can be. It’s risky if you don’t manage it the right way. People lost money because they got in way over their heads on their initial mortgages (they bought too much house) or they saw the equity in their home as an ATM, started borrowing on it and ran up a mountain of debt that way.

So when it comes time to invest in real estate, don’t try to play “flip that house.” Real estate has always been a great long-term investment and, unlike a mutual fund, it has a practical use as well. After all, you can’t live in a mutual fund.

Make sure you go in with your eyes wide open if you do buy. There’s more to owning a home then just the mortgage. You’ll have additional insurance payments, taxes and maintenance. But if you can fit all of that in your budget and get into a home that makes sense for you today, the growth in the real estate market will pay off for you tomorrow