Did you know that real estate usually increases in value year after year?
Appreciation is the increase in the value of a property over time. It basically means that your home is gaining value as you own it. So you may have bought your home for $100K ten years ago and today it could be worth $125K.
Some people invest in real estate because of appreciation. Home values typically rise with the economy and inflation and some folks prefer this option to a standard bank savings account.
Just remember, investments are always risky, so it’s not for everyone.