Houses for Sale in Lafayette Indiana

1. What You Need To Know About The Investment Potential Of Home Ownership The American Dream has always included owning a home. Because of this, many people think owning a home is a right, even an obligation, without considering the advantages and disadvantages. A home purchase is something you should consider carefully before making a financial commitment-as with any investment decision. Investment with a long-term outlook As a home's value increases over time, it is said to be appreciating. The value of a property may not rise dramatically in the short term because real estate prices are cyclical. The likelihood of you being able to resell your home for a profit later is excellent if you live in your home for a long period of time. You can make the best long-term investment by purchasing a home. Residential real estate tends to rise in value despite dramatic dips like the 2008 Housing Crash. In just six years, the U.S. median home price has increased by 16% from $298,900 to $346,800 - a rise of over 16% in just six years. With an increase of 42.7% in the median sales price since a decade ago, the median sales price this year was $219,000 (Q4 2009). The return on your investment (ROI) for housing is not bad. Take property value into account The land on which the home sits contributes most to the appreciation of real estate, while the structure itself depreciates over time. A home's location isn't just a catch- phrase; it's a critical factor to consider when making a purchase. All of these factors are taken into consideration when appraising a property, such as the neighborhood amenities, park districts, road conditions, etc. Take a look at a rundown house that is uninhabitable due to neglect. The residence may still be worth a great deal more than its contents - in this case, even more than the house itself. The seller might consider either staying with the house as it is or demolishing the house and selling the land separately at a higher price. Equity Building

2. A home's equity is equal to how much your mortgage still owes in comparison with its market value. An individual may consider both equity and appreciation at the same time. Over time, you can expect your home's value to increase. Paying down your mortgage also increases your equity, as less interest comes out of your payment and more goes to reducing the principal. If you do not make a substantial down payment or regular prepayments, building equity does take some time. How much equity you build and how much appreciation you can realize depends heavily on how long you own your home. Equity increases with time. Appreciation of equity and home values The greater the value of your home, the more you save, just as your savings account value increases with interest as you pay down your mortgage. If you stay in your home long enough, you will likely get back every dollar you paid out. Savings should more than cover your outlay after a few years at an average interest rate of 6%. Getting loans based on the amount of your home equity is another advantage of home equity. Investing in the equity of a home as well as the appreciation of a home is common practice. Investing in a home with an appreciating value may delay taking out a home equity loan so that they can take advantage of a seller's appreciation. Financial Responsibility and Pride The feeling of owning your own spot in the world is often cited as a benefit of homeownership. It is not necessary to get permission from a landlord to decorate, remodel, paint, or remodel your house. There are responsibilities that come with ownership, however. Your home and equity are at risk if you don't pay your mortgage. It is your responsibility to maintain and upkeep your property. Having a leaky water pipe repaired at 2:00 am isn't something you can call your landlord about. It is your responsibility to repair the roof yourself if it has been damaged. Keeping your lawn mowed, clearing snow, and having homeowners insurance are all your responsibilities. Final Thoughts There are a few factors that determine whether buying a home is a good investment. The investment of a home is a good one if you intend to live there. It is a financial burden to own a home owing to both the initial and ongoing costs involved. A good return on investment can be expected if you build equity and sell at a time when the market is favorable to sellers. A weak market, a home with little equity, or selling too early can result in a loss of money.

3. It is not for everyone to invest in a home because it is an investment that comes with many risks and benefits. A careful balance must be struck between the benefits and risks of an investment. Choosing between home investments and other investments can be a difficult decision. Consider pros and cons rationally before investing. Contact Timberstone Homes if you're ready to begin your home buying process. We are experienced realtors in Lafayette, Indiana. For more information, visit our website!