The Best Investment

As a fairly common rule, homes appreciate about 4 or 5 percent a year. Some years may be more, and some will be less. The total figure will vary from one neighborhood to another, and from one region to other regions.

While five to ten percent may not seem much at first glance. stocks (at times) appreciate rapidly more over time, and you possibly earn over the same return with a safe investment in bonds or treasure bills.

But then again maybe you should take a second glance… Presumably, if you were to buy a $300,000 house, in which you did not pay cash or check for the home. Also you purchased with the help of a mortgage. Then you was able to put as much as 20% percent down – this would then be an estimated investment of $60,000.

At an estimated appreciation rate of five percent annually, a $300,000 home would likely increase in value of $20,000 during the first year which means you would earn $20,000 with an investment of $60,000. Resulting in the annual "return on investment" being an amazing 25%.

Of course, you are still paying property taxes and making monthly mortgage payments , along with other homeowner costs. However, with the interest on your property taxes and mortgage can both be classified as tax deductibles, the government can essentially subsidize your home purchase.

The rate of return when purchasing a home is greater than most other investments you could consider making.

Depending on the area where you purchase, as well as the total price including down payments, closing costs and taxes it may be a good investment to purchase. The better the neighborhood and more striving the community is the better chances are the investment will pay off in the long run in more ways than one.