In times of economic uncertainty, it's nerve racking just thinking about investing your hard-earned cash.
According to the U.S. Census and national property sales statistics between 1940 and early 2010, the median home value has more than quadrupled over the past 70 years.
Leverage is a significant advantage of Real estate investments. It allows you to earn appreciation off of the bank's mortgage to you. With a 20 percent down payment, it will be five times the home appreciation rate. If you've taken out an FHA loan with only 3 percent down, it will be like winning the lottery. A 3 percent annual appreciation rate will translate into a 100 percent rate of return on your down payment.
According to the U.S. Census and national property sales statistics between 1940 and early 2010, the median home value has more than quadrupled over the past 70 years.
Leverage is a significant advantage of Real estate investments. It allows you to earn appreciation off of the bank's mortgage to you. With a 20 percent down payment, it will be five times the home appreciation rate. If you've taken out an FHA loan with only 3 percent down, it will be like winning the lottery. A 3 percent annual appreciation rate will translate into a 100 percent rate of return on your down payment.
