Welcome or Register

The Best Investment

​_____________________________________________________

The Best Investment

 

As a fairly general rule, homes appreciate about four or five percent a year. Some years will be more, some less. The figure will vary from neighborhood to neighborhood, and region to region.

Five percent may not seem like that much at first. Stocks (at times) appreciate much more, and you could easily earn over the same return with a very safe investment in treasury bills or bonds.

But take a second look…

Presumably, if you bought a $200,000 house, you did not pay cash for the home. You got a mortgage, too. Suppose you put as much as twenty percent down – that would be an investment of $40,000.

At an appreciation rate of 5% 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 $40,000. Your annual "return on investment" would be a whopping twenty-five percent.

Of course, you are making mortgage payments and paying property taxes, along with a couple of other costs. However, since the interest on your mortgage and your property taxes are both tax deductible, the government is essentially subsidizing your home purchase.

Your rate of return when buying a home is higher than most any other investment you could make.

​_____________________________________________________

7Previous Return To Buyer Tips   Next8

 

Quick Search


view all


Any

Any

No Min.

No Max.

Don't Miss a New Listing Again

Already registered? Login

FREE AUTOMATED EMAIL UPDATES
Sign in to take advantage of all this site has to offer. Save your favorite listings and searches – also receive email updates when listings you like come on the market for free!

*Contact Information NOT Shared*

agent photo
Patricia Joyce
9 West Main Street
Clinton, NJ 08809
Office: (908) 735-8140
Cell:  (908) 303-0184
Fax:  (908) 735-8372
Email: pjoyce@pjoyce.com

Contact Me







* fields are required

All of your information is kept strictly confidential. Any information that you provide will not be shared or sold to anyone. By submitting this form with your telephone number you are consenting for Patricia Joyce and its authorized representatives to contact you even if your name is on the Federal "Do not call List".