Home > Real Estate > Should You Treat Your House Like an Investment?

Should You Treat Your House Like an Investment?

Should You Treat Your House Like an Investment?For most people, the purchase of a home is the single biggest financial transaction they will ever complete. Depending on where you live and what your budget looks like, you could spend anywhere from hundreds of thousands of dollars on up to a million dollars or more to purchase a house.

With that kind of money in play, it is obvious that you should treat your house like an investment. The answer to the question posed in the title of this article is an easy one – yes, of course you should treat your house like an investment.

With that answer in mind, let’s take a quick look at some of the things you can do to protect your investment to the greatest degree possible.

Care for Your Home

One of the most important things you can do as a homeowner is to protect the value of your home through regular maintenance and upkeep. From simple things like landscaping to complex repairs inside and outside of the home, you need to be sure to keep your property in good condition as the years go by. When the time does come to sell your house, the efforts you put in to maintain its condition will be repaid in a big way.

Make Timely Payments

There are a number of reasons why it is important to keep up with your mortgage payments every month. For one thing, you need to remain current on your payments in order to stay in your home. It won’t take long for foreclosure activities to begin if you fall too far behind. Also, every payment you make will reduce the principal amount owed on the mortgage by a certain amount. That is basically money which you are depositing into the equity of your home. Depending on market conditions, you may make a significant profit on the sale of your home once you decide to move out. By paying down your principal month after month, you will essentially be investing in your own future.

Watch the Market

One of the things you need to do with an investment is sell at just the right time to maximize your return. Of course, you can’t just sell off your house without having another place to live. But, monitor the market and strike when the time is right if you are thinking about moving anyway. Timing your move with the right market conditions can help you get the most from this important investment.

Use It to Your Advantage

If you have positive equity in your home, you can use that equity to your advantage. It can be used to secure things like lines of credit or even business loans. Your home should be seen as an asset. So, you may be able to use it in order to better your financial situation as a whole. If you aren’t sure how you can use your home to leverage your overall financial situation, speak with a banker or other financial professional for advice.

 

Do you treat your house like an investment? What else is important to do to take care of your home and it’s value?

 

Photo courtesy of: Pexels

If you enjoyed this post, please considersubscribing to the RSS feed to have future articles delivered to your feed reader.
The following two tabs change content below.
John Schmoll is a Dad, husband and veteran of the financial services industry. He's passionate about helping people learn from his mistakes so that they can live lives free from the shackles of debt and empowered to make their money work for them. You can check out his other sites: Frugal Rules, for ways to improve your financial literacy; and Sprout Wealth for tips on different ways to make more money. John has been featured on Forbes, Lifehacker, Yahoo Finance and US News & World Report and more. If you're wanting to grow your blog, check out my blog coaching services to see how I can help you take your site to the next level.

One comment

  1. Personal residence is certainly one of – if not THE – most common savings vehicle for Americans. The return on investment in average markets isn’t as good as stocks, but it’s a decent conservative savings vehicle.
    Financial Coach Brad recently posted…Your Investments: Yes, you’re already paying; what are you getting?My Profile

Leave a Reply

Your email address will not be published. Required fields are marked *

*

CommentLuv badge