Is Home Buying A Good Investment?

By Author: Jay Woods
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With all the talk today, is home buying still a good investment?

I belive that real estate is still a good investment. I know this is not the time to talk about home buying as an investment in this down market.But I still believe that buying a home, even in this market is still a good financially sound decision. Colorado Home Mortgage Here are some examples of what I am talking about.
How much does it cost to buy a home?The real expense of purchasing a house.In this example I will use the current state of the real estate market.The loan that most people are getting is a federal housing authority loan or FHA. So I am going to use this as an example.i will try and use round numbers for this example to keep it simple. In my example the house price is $100,000 dollars. In order to get a loan you are going to need a 3 % down payment.it comes out to be three thousand dollars in this example. Their will be extra money required for the down payment. Lets say on average 2500 dollars to help with the closing cost on a $100,000 dollar house. the total so far on the property ...
... with the closing cost and the down payment is five thousand five hundred dollars.
some people would jump to the conclusion that they will be paying five thousand five hundred dollars. The US government is giving a $8500 dollar credit to buy a house this year . So now we are up $3000 . Our home loan payment will need to be included. In our example our home loan is eight hundred and fifty dollars. Well no matter where we live we are going to have to pay that any ways are we not. So we are now up $3000 so far in our investment.
I do want to consider this a long term investment. So I want to see were we might be in 10 years. On day one we are up $3000. here is where we could be after ten years. Most homes in our last fifty years have doubled in value every ten years. So we should be up another $100,000. The total profit then would equal about one hundred three thousand dollars .I don't know of any investment or business that has a track record like this. As long as your in it for the long haul I believe Buying a home is a good investment.
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