It can be important to realize that your home is an investment. This seems like a terribly simple concept, but real estate will always appreciate in the long run and typically at a greater rate than inflation. The question then becomes, how to maximize your investment. Urban areas are constantly expanding, and as a real estate professional this is particularly apparent. Rents and home prices continue to increase in neighborhoods that once held little real estate value. Gentrification has pushed into communities like Dorchester and Boston’s North End. Historically these neighborhoods’ high crime rates and low standard of living made them undesirable areas, but now not only are they safer but they have also managed to hold some of their cultural charm. Consider investing in neghborhoods on the cusp of suburban metro areas. These are long term investments with solid profit potential. A two family owner occupied house can cover a majority of the mortgage and insurance costs if the second unit is rented, meaning your equity gains value from someone else’s rent. It is certainly worth considering as these neighborhoods are or will soon be on the rise. Just like the stock market, buy low and sell high with minimal risk and you’ll earn long term stability and hold onto assets that through equity and sales will offer far more options than the majority of other investments.
