Home purchases are driven by both finances and emotions. The first drivers that make the decision are more emotion based like comfort, social standing and environment for children. While these are factors for anyone who is choosing a home for their family, one must remember that the prime factor to consider is the financial one. When you buy a house, it’s a financial investment. You create wealth that appreciates over time and also has the possibility of becoming one that gives additional income. On the surface all these assumptions are correct but one must look deeper in order to understand the investment better.
Real estate is very inconsistent and properties may not appreciate as expected. The predictability of real estate is similar to the equity markets where anything can happen. Hence a better understanding of location, social infrastructure, future possibilities andbuilderreputation need to be considered. Clear legal documentation is also important a done must ensure that clear and undisputed deeds are given at the time of purchase.Properties which have all these factors going for them have a better chance of appreciation in the future.