Like most Americans you watch the stock market with some interest, and trepidation. After all, the opportunity to see a signficant gain in your personal wealth through stock ownership is tremendously appealing, except for the possible risk of loss that accompanies this investment.
Equally attractive for most people is the idea of owning a home and creating wealth through that investment. however, many people fail to recognize the real economic returns of homeownership versus market returns on stock investments.
For example:
Let's assume that you have $50,000 to invest, and of your investment options is to purchase either a primary home or investment property. If you were to find a home to purchase for $250,000, your $50,000 downpayment would equal a 20% downpayment. If your new home investment were to appreciate at a rate of 5% annually (the market average), your new home would be worth $262,500 after the first year of ownership.
If you were to view this appreciation in terms of the total value of your home, at 5%, you might consider this to be a small return. However, if you compare this to the $50,000 that you actually invested, your return is actually 25%. Not a bad return at all!
Homeownership is a fantastic way to build real, sustainable personal wealth. Let me help you maximize that investment through a consultation today!
Sincerely,
Francine Henderson, ABR
Associate Broker
BHGRE Metro Brokers
(404) 843-2500 (Office)
(770) 314-4027 (cell)
Email: francine.henderson@metrobrokers.com