Question

Is investing in housing always a very safe investment?

Short answer

Yes, it is a risk-free investment because it will not lose money.

Step-by-step solution

Concept introduction

Financial investment: An investment that yields a profit asset.

Explanation of solution

Real estate investments are a commonplace investment. Because earnings cannot be realised in a short period of time, it should be for the long term. When purchasing a home, previous trends in the same location's appreciation are considered. However, additional factors such as mortgage amount and interest, property taxes, and house maintenance costs have an impact. All of this raises the cost of goods. If the mortgage payment is lower and the appreciation is good, the investment is better than any other. Otherwise, there is no way to say that buying a house is a hazardous investment because it will not result in losses.