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Real Estate Investment Tips 101: Is Buying A Home Always A Good Investment?

Is buying a home – house and lot- a good investment? In short, is a real property a good investment alternatives?

I meet people who ask me these questions, whether or not buying a home pays high return for their investment.

From a realtor’s point of view, however, I could say that buying a home is really a good investment.

Actually, we buy a house because we intend to live in it for a long time or, to some, for a lifetime. But a house is also a good investment for its own sake. I’ll enumerate here the reasons why, to help you decide for yourself:

1. Your house appreciate its value over time, so it is anti-inflation. Real estate property, like a house and lot, increase in value, for example, every year. That represents savings for you.

2. You can buy your house with little investment using leverage funds, like borrowing money through a mortgage, and it adds up to your assets.

Because of your house (actually real estate since you also own the lot where your house stands) appreciates its value, your investment will increase and you earn passive income as a result.

3. Savings. Owning your own home is a way to save money, e.g. compared when you are just renting the property.

4. Peace of Mind And Status. Since you own a house, you will have peace of mind because no matter what happens, no landlord will evict you out.

Furthermore, our society as a whole considers owning a home as a status symbol, as differentiated from being a renter. Homeowners see their homes as proof of success and stability, a reward for their hard work.

There are many other reasons why buying a home is a good investment, but to me the foregoing four are enough to convince me that it is.

About Eli Gatanela

Eli Gatanela is a real estate lawyer and a PRC-licensed real real estate broker. He is a Certified International Property Specialist (CIPS) and an International REALTOR® Member of the National Association of REALTORS® (NAR) of the United States of America. Eli has many years experience in real estate brokerage, property legal consulting, and property management. He studied Executive Program in Real Estate Development at the Asian Institute of Management. e-mail: atty.gatanela@yahoo.com

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