Given the reality of investment growth, real estate overall is one investment you can count on.
Yes, it occasionally has its ups and downs, but otherwise, over time real estate steadily increases in value more so than any other investment with less risk. Of course, the size and type of investment depends on your own personal (and sometimes) professional needs and desires.
For example, if you plan on moving to a community to purchase a home where you plan on staying long term, perhaps even living there long enough to pay off your mortgage, then the positive growth benefits are without question. Let’s do some math:
15 years ago in September of 1999, the median price of a single family home in Santa Clarita was $224,900. Flash forward to September of 2014, and that home’s median price is $490,000. That’s nearly a 118% increase in your investment.
Conversely, if you bought your home in September of 2013, you will already see an increase of nearly 14% in your investment.
As we mentioned at the start however, the real estate industry occasionally does have its ups and downs. Just like any investment, there is an element of risk. For long term residential investors, your risk is minimized as you’ll ultimately see growth in your equity. Continue reading Was Your Home Purchase a Good Investment?