Buying a home should be the largest wealth creator for people young and old. Many people rightly believe that having a home is their financial leverage and something that they can enjoy at the same time. The British dream is having a home of their own which is very different to on the Continent where most people are happy to rent their homes. Many people are trying to keep a dream alive today in what they think is an unfortunate real estate market. However, just checking a few facts here and there will bring the importance of this financial decision into focus.

Worldwide property prices have shown a steady increase in value for decades and will continue to do so. House prices in the UK have risen at an average of 5% year upon year even allowing for some 'housing slumps'. These are always compensated for by the property surges we see on average every 7/8/9 years. 5% down on a 300,000 house is an investment of 15,000. In any given year this house will rise in value by 15,000. Give a stockbroker 15,000 and see if he can guarantee you those profits year on year!

If you put 5,000 into the stock market and got a 5% gain, you would receive a 250 profit. Clearly, the property market lets you come out much further ahead in average years. It must be stressed that we do have some exceptional years where the value of your property could possibly go up by even a 1/3rd! but this is exceptional.

Of course there are some lean times periodically when property prices take a temporary downturn due to other economic factors. It's unfortunate if you're just starting out when this occurs and it could be a struggle. If you're established in your home when this happens then just sit tight and wait for it to end. It Will!

If you look at it over a longer period of time, say you put 5,000 into the stock market in 1996 and the average S & P return would make that investment worth about 11,700 today which is an increase of 6,700. The average house price in 1996 was 70,000 and today that same house would have gained 50,000 in value if not more. The real estate market consistently shows itself to be a substantial investment method to riches.

Home values over time tend to increase at a steady pace and can be less volatile as stocks can really shoot up and down. There has never been a time when the housing market has not come back up from the down turn in values. The reason is that the British have a real belief system and the desire to own their own home and will sacrifice and make it happen and this just keeps fueling the market.

If people are careful about when to trade up on their property they can also avoid the necessity of paying Capital Gains Tax which means over the years a person can develop a small house into a much larger one or even a portfolio of properties without paying Capital Gains Tax. Tax free investments is definitely the way to go!

There is no reason to fear home ownership in the market in the current market with all the doom and gloom around. Simply look for the type of property and payment mechanism that you can afford and resist the temptation to use your home for a "bank" when you need money as in an equity line of credit. The home will be by far your best asset in your future financial portfolio and will continue to make you feel secure in your financial future for the rest of your life. Everybody's circumstances are different and a really important task is to make sure you are in the best mortgage for you! There are lots of different mortgage options out there and it can make a massive difference to your lif if the get the best advice for you.

If you are in your home already and your finances are getting a little stretched by the current downturn in the economy then why not consider a debt consolidation mortgage? You can really reduce your monthly outgoings as opposed to paying monthly credit card bills and the like.