But is it possible? Capital gains taxes can eat over 20% of your investment gains each year.Looking at the investments outlined above the $124,000 that becomes $580,000 after 10 years, grows to only $434,000 after yearly taxation. This means that in 10 years that $434,000 is worth about $320,000 [...] It has almost always returned more than the interest rate for an average home.If you are making 20% while paying 8%, you are gaining 12% on your invested money. Are you paying a mortgage around 8%? Absolutely NOT! If your mortgage was for $120,000 you now have over $124,000 in equity created by appreciation alone. Invest Your Home in the Stock Market Some years returns may be only 8 or 9% other years they be as high as 30%. Since its inception, the New York Stock Exchange has averaged an increase of 11% per year (including the years of the crash of 1929 and subsequent depression). Taxes take their toll.Another aspect to consider is inflation. A lower interest rate can free up some of your monthly mortgage payment for investing. You also need to understand how to invest your money wisely and look for opportunities to make money on the float.***************************************************************© Simple Joe, Inc.David Berky is president of Simple Joe, Inc. The above examples are shown assuming your investments are not taxed on a yearly basis.
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