Some people just don’t have the discipline to set aside money each month to save and invest. In this case,
a home is more than a shelter, it acts as sort of an automatic savings account. You can build your savings in
two ways:
First, each month a portion of your payment goes toward the principal to build equity in your home. In the
early years of the mortgage, most of your payment goes toward interest. Over time, however, that turns
around and your equity growth begins to accelerate.
Second, U.S. home prices have always appreciated over the long term. Average appreciation on a home is,
5-6 percent annually, according to the National Association of Home Builders. Over time, history has shown
that owning a home is a solid financial investment despite periodic market downturns.