The primary aim of real estate investment is making money. Apart from making money in real estate, there are also other benefits of owning a home. Here are some benefits, including how to make money by investing in real estate.

Savings

You accumulate savings in two ways.

1) Each and every month a portion of your monthly mortgage payment gets applied toward your principal balance and as time goes on your balance reduces and as your balance reduces so does your interest. Admittedly, in the earlier years of your mortgage, this is not much, but given time, it does accelerate.

2) Homes typically appreciate every year (average approximately 5% - it will vary from year to year) and in some years may even depreciate (see Investment). History has shown that owning a home is one of the very finest and secure financial investments that you can enter into.

Investment Benefits of Home Ownership

Homes generally appreciate around 5 - 9% per year. The percentage will vary from area to area, city to city, and region to region. Although 5% may not seem like a significant amount at first, think about this - a 5% increase on a $100,000 investment is $5,000 dollars earned by you on your "borrowed money" (mortgage) per year. Not too shabby huh?

Statistics show that the rate of return when purchasing a home is higher than almost any other investment you could venture into, including the stock market. Homes typically will not decrease in value overnight like a stock can.

Did you know?
The interest portion paid on your mortgage and your yearly property taxes are tax deductible.
The government is essentially subsidizing your home purchase!