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Why Spending Money on Real Estate Is a Good Investment


It’s no secret that home ownership comes with a lot of work and expense. Even the newest, most well-built, luxury home needs love and care (in the form of your sweat, money, or both) to stay beautiful. So why would anyone spend their hard-earned money on such a big headache?

Equity, equity, equity

The simple answer is that when you write that mortgage check every month you are buying something tangible, your house. A rent check goes to a landlord for the temporary use of a home. But when your lease is up or you move, you don’t get to take that home, or any of the money you paid in rent, with you. As a home owner, your monthly mortgage payment goes to building equity, or actual ownership, in your home. When you sell, you get to take that amount of equity with you.

What is appreciation?

If you are thinking long-term, you want to consider how much your home can go up in value, or appreciate. If you buy a home for $100,000 in 2010 and sell that home for $200,000 in 2015, you get to take that additional value with you in the form of cold, hard cash (minus any fees or taxes you may incur). You can increase your home’s value by making improvements or buying in an up-and-coming neighborhood. It helps to talk to a realtor about the long-term potential of your home’s value.

A space of your own

My favorite reason to be a home owner is simply the satisfaction I feel by creating and maintaining a home that is all mine. I have complete control over paint color, landscaping, flooring, and a variety of other details that make my home special to me. It is an investment of time and money but the pride home ownership can bring is priceless.

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