Today I am continuing my series about the advantages of owning real estate by discussing the third advantage: appreciation.
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Today I continue my series on the advantages of owning real estate. The benefit we'll be discussing today is appreciation.
Let’s say that you go out and buy a $300,000 house today. You do not actually need $300,000 if you use a lender and get a mortgage loan for this purchase. Based on your credit score and what your lender allows, you may be able to put down anywhere from 5% to 20% on that $300,000 home.
The best part about this is if your home appreciates 10% to 20%, you will get the appreciation from that entire $300,000 sum. If you wanted to invest $300,000 in the stock market, you would need that money in your pocket to invest it. When buying a home, you can leverage a smaller amount of money and still earn the appreciation from that entire $300,000.
Based on your credit score and what your lender allows, you may be able to put down anywhere from 5% to 20% on a $300,000 home.
There can be huge benefits when you own actual, tangible property. The biggest benefit is you can buy even more property and you do not have to have all the money in your pocket to do so.
Leveraging your money long term can definitely work for you. After 30 years of owning the property, you’ll have a good investment that brings in money just like investing in the stock market would.
If you have any additional questions or you are interested in buying or selling, please feel free to contact me. I look forward to speaking with you soon.
