At some point in our lives, we all consider purchasing a home whether out of need, desire to improve our standard of living, or as an investment. Real estate is no stranger to the investment world and not without its prosperous returns. In comparison to other ventures in either the stock or bond market, real estate has proven to be a sound domain to entrust your valued dollars not to mention the all American trend of property ownership has remained constant for years.
Consider the following statistics:
For the last five years, the rate of return on a house downpayment was approximately 11.1% per year for the average U.S. homeowner, according to an analysis by Hearthstone Advisors, San Francisco, a home building financial investor. That compares to 9.4% annually on the Standard & Poor's top 500 stocks, 6% on a Lehman Brothers bond fund and 1.7% on 91-day Treasury notes. While property values in New York, Texas, and California have either stagnated or decreased, the overall average of home equity has grown at an annual rate of 12.6% in 29 major cities according to a study conducted by the Joint Center for Housing Studies at Harvard University Over the last 16 years, property values have been consistently stable while the Standard & Poor's top stocks although on an upswing, they have reportedly been more unstable. |
