Real Estate is still a great investment and you can make it work even better by making informed decisions!  While many Americans have seen a decrease in the value of their properties in the last few years, the longterm prognosis is still prommissing.  If you bought your property 10 years ago, you've seen these positive gains (even considering recent loses).  These gains are typically much better than other forms of investments, and they are much less risky. 

If you are new to the homeowner flock, focus on saving on interest.  If you did not receive an amortization schedule, ask your bank representative or real estate agent for one!  By paying the next months principal payment you will eliminate that month's interest.  This is especially beneficial in the earliest portion of the loan since the interest payments are  substantially higher.

Think about how you use your equity, people sometimes fail to count equity loans or refinancing (with taking cash out) as part of a dollar figure gain.  Once you've spent the money, it is easy to forget but the house is earning you cash.  If you are considering something of that nature, be sure to analyze long term benefits, costs, and possible negative factors.  Taking advantage of today's lower interest rates is extremely appealing, but if your goal is to sell in the next few years weigh the cost of refinancing carefully with the savings over that term.

It is interesting to me how the trend goes that a majority of people buy when the market is high and sell when it's low.  From the recent buzz, it seems that we are at the tail end of a historically fantastic buyer's market. Check out this months issue of Fortune magazine! If you are considering an investment, think real estate!  

Consider, you have been living in the home you purchased ten years ago for $110,000, you've been paying down your mortgage and you now have a fair amount of equity in the home.  Perhaps you sell your existing home for $150,00, 2years ago when you thought about selling it was worth $165,000, for a 10% loss totalling $15,000.  However, you've been dreaming of buying that $250,000 house that has just seen the same 10% loss saving you $25,000 and now you're up by $10,000.  Plus a considerable equity gain over the long term, which you will also see with your new purchase! Historical data shows that Real Estate is cyclical, and remember a house is also a home, instead of paying someone else for your living expense you are investing in yourself. 

Have you made a smart real estate decision?  If so, please share it by commenting here.