As a fairly general rule,
homes appreciate about four or five percent a year. Some years will be more,
some less. The figure will vary from neighborhood to neighborhood, and region to
region.

Five percent may not seem like that much at first. Stocks (at
times) appreciate much more, and you could easily earn over the same return with
a very safe investment in treasury bills or bonds.

But take a second
look…

Presumably, if you bought a $200,000 house, you did not pay cash
for the home. You got a mortgage, too. Suppose you put as much as twenty percent
down – that would be an investment of $40,000.

At an appreciation rate of
5% annually, a $200,000 home would increase in value $10,000 during the first
year. That means you earned $10,000 with an investment of $40,000. Your annual
"return on investment" would be a whopping twenty-five
percent.