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Expert Advice
Why Buying a Home is a Good IdeaHomes generally appreciate about four or five percent a year. Some years will be more, some less and may vary from neighborhood to neighborhood and region to region.Although five percent may not seem like that much at first. But lets take a second look...If you bought a home for $200,000 and you take out a mortgage on it. You put 20% down - that would be an investment of $40,000. If the home appreciates at five percent annually your home would increase in value of $10,000 during the first year. That means you earned $10,000 on an investment of $40,000. Your annual return on investment would be 25%. Although you are making mortgage payments and paying property taxes, these items are both tax deductible. Your rate of return when buying a home is higher than most other investments you could make. Be sure to do your homework before you purchase your new home...it will save you lots of grief.
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