Liberty Rental Properties
|
Liberty Rental Properties
|
|
|
Advantages of Homeownership
Best Investment …
· Consumers who take advantage of this excellent buying climate to purchase a home will find that it is the best investment they ever made.
· Buying a home is the largest investment most families will ever make and homeownership is the single largest creator of wealth for Americans.
· It allows families to build financial security as the equity in their home increases.
· As home owners repay their mortgages, their debt declines, while overall wealth and equity in the home grow.
· Although local housing markets periodically adjust according to overall economic conditions, over the long term real estate has consistently appreciated.
· On a national level, home appreciation has historically risen 5-6 percent annually.
· Five percent may not seem at much at first, but take a look at the numbers. If you bought a $200,000 house and put 10 percent down, that would be an investment of $20,000.
· At an appreciation rate of five percent annually, a $200,000 home would increase in value $10,000 during the first year. That means you earned $10,000 with an investment of $20,000. Your annual “return on investment” would be a whopping 50 percent.
· In contrast, putting the same $10,000 in the stock market and registering a similar five percent gain would only yield a $500 return on investment.
· The big difference in returns is a result of “leveraging” —putting down a small amount of money to earn the biggest return.
· This is especially important for first-time home buyers. Entering the market now starts you on the road to home price appreciation. And the profit from selling a “starter” house will enable buyers with growing families to afford a bigger home in the future.
|
Copyright © 2008
Liberty Rental Properties. Whether you're
looking to rent a house or condo, lease with option, rent to own, or purchase
one of our new homes or
|
