Buying A Home is a good Investment:
As one of the most expensive purchases most people ever make, a home's investment potential should be an important consideration for prospective home buyers. Mortgage rates have never been lower and house prices have leveled out. There are big tax advantages for owning rather than renting.
Buying today should prove to be a rewarding long-term investment.The way I'd think about a home's investment potential is to consider it a long-term investment. With a typical home, you can expect average annual appreciation of 3%-5%. The double-digit annual returns we're experiencing now in some markets aren't normal or realistic. But when you compare a 3%-5% return with other long-term savings options like CDs or savings accounts that are now earning closer to 1%, an investment in your home looks pretty attractive. Also, there are few other investment options where you can typically borrow 80% against your capital (your down payment) and that means if your investment appreciates, you're able to make more out of that investment than you would in less highly leveraged investments.