Explanation of solution.
Real estate investments are commonplace investments. Because earnings cannot be realized in a short period of time, they 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 damages.
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