Is home buying a good investment? I belive that real estate is still a good investment. I know this is not the time to talk about home buying as an investment in this down market.But I still believe that buying a home, even in this real estate market is still a good financially sound decision. Colorado Home Mortgage I am going to give an example of this. How much does it cost to buy a home?The real expense of purchasing a house.In this example I will use the current state of the real estate market.The loan that most people are getting is a federal housing authority loan or FHA.I am giving FHA as an example.i will try and use round numbers for this example to keep it simple. i will use a round number of one hundred thousand dollars. In order to get a loan you are going to need a 3 % down payment. That is going to be $3000 dollars. Their will be extra money required for the down payment.For our example I will use twenty five hundred dollars extra for the closing cost on a one hundred thousand dollar property. So we have a total of about $5,500 dollars into the house. Most people would say that we are down $5,500 dollars but this would not be actually correct.but the federal government is giving a eight thousand five hundred dollar tax credit . So now we are up $3000 . Our home loan payment will need to be included. In our example our home loan is eight hundred and fifty dollars. Well no matter where we live we are going to have to pay that any ways are we not. So we are now up $3000 so far in our investment. I do want to consider this a long term investment. What would we have after ten years?. On the first day of the ral estate transaction we have made three thousand dollars. here is where we could be after ten years. Most homes in our last fifty years have doubled in value every 10 years. So we should be up another $100,000. The total profit then would equal about one hundred three thousand dollars .I don't know of any investment or business that has a track record like this. As long as your in it for the long haul I believe Buying a home is a good investment.
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With all the talk today, is home buying still a good investment?
Colorado Home Mortgage Blog information At http://coloradohomemortgage.blogspot.com Visit With all the talk today, is home buying still a good investment?.
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