In life, we always look for something where we can place our hard-earned money. This is what we call investments. It takes all industry working and moving. Generally, it is a risk. You may gain some and you may lose some. In all fairness, you do not want to be on the losing end. You might think that it requires a college degree to know what a good investment is, but in reality, that is not a pre-requisite.

Real estate is one industry that is underrated and unconsumed. There is a thinking that only the riches of the riches can invest on real estate, but the truth is that everyone can be an investor, starting by having your own home.

How it becomes an investment? Simply, it is a commodity that can be utilized by people as part of basic needs. It means there is a supply and demand cycle that upholds trade. If it is considered as an investment, the next question is “Is it a good one?” Here are some of the reasons why you need to consider placing your savings on this.

Rent versus tax

All people need a shelter. This is a fact. If you are renting a house, you may be spending around hundreds to even thousands of dollars monthly. You are paying such amount, but the place would not be yours even if you have rented it for 10 years. While if you invest on your own house, you would be paying a monthly mortgage, maybe as big as what you are paying for a rent, but the difference is that you have the title deed after you finish paying the whole amount.  Why spend on something that is not yours, if you can spend it for yourself. Aside from that, rent usually increases every year, while having a fixed rate mortgage, your monthly expenses relatively remains the same.

Leverage

As time goes by, most of the tangible investments such as cars, gadgets, and other commodities depreciate. It means that its value decreases. For example, if you purchase an iPod now for $150, it will not have the same value 2 years after. On real estate investments such as properties, as it ages, it appreciates especially if through time, the area where it is situated becomes more developed.

Control over asset

Aside from having higher leverage through time, the owner has the control to maneuver the property in any way he wants to increase its value and utilization as long as proper documents such as permits are processed. Home improvements and renovations are good examples of this. The owner can also remodel his house to become a commercial establishment.

Statistics would also show that real estate is a great investment for you. In the study of Fannie Mae in 2003, 84% of Americans think that purchasing a house is a good long-term investment, 87% believe that their homes have increased in value and 76% of those report that the value increased more than what they expected. Do you want to be part of the majority and experience a great deal of investment? Start now and invest to your own home.