Everyone needs a place to stay throughout adulthood, and real estate offers you a unique opportunity to combine your basic need for shelter with the possibility of making a profit. Think about it. The home you purchased to live in can eventually be sold for more than you paid for it, or it can be converted into a rental unit to produce monthly income for years to come. Show me a stock or mutual fund that can do that!
For most people, buying their own home is the first real estate investment they will ever make. Even though it requires a significant down payment, owning a home is usually more cost-effective long-term as you end up building equity, or ownership in the house. Think of all the money you can spend over the years in renting a home, and this money is in a sense wasting away while you rent.
Is your home really an investment? Some commentators state that your home cannot be considered investment property because you’re not renting it out for monthly income. They also state that you have to pay the mortgage, property taxes, and other expenses each month or year. How