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> I'll go ahead and say this. Your home is NEVER and investment. A house that you own, maybe. But, I repeat, your home is never an investment. I'll go ahead an
by jholman 10y ago
> I'll go ahead and say this. Your home is NEVER and investment. A house that you own, maybe. But, I repeat, your home is never an investment.
I'll go ahead and say this. My home is certainly an investment. I allocated some capital to some real property, and this real property generates value for me every day, which I might have purchased otherwise (indeed, would have been nearly forced to). Because of the ability of my home to generate value in this manner, I expect that others might want to own it, and so it can probably be resold. I also am pretty optimistic about my ability to resell it for more than I bought it for, although perhaps not at such a price such that the purchase was as profitable as, say, buying an Vanguard ETF.
- John23832 10y agoI'm not saying you can't make money by buying and selling houses, but the average person's home is not an investment.
- tormeh 10y agoWell, it is if you plan to sell it and move to a cheaper place once you retire, using the profit to fund part of your retirement. That's well inside the definition of retirement saving.
- John23832 10y agoUsing a layman's definition, yes. However, strictly speaking, the average person's home is not an investment.
- jdmichal 10y agoEveryone is born short housing. Buying your first house is covering a short position. Renting instead of buying is maintaining a short position. Buying your second house is taking a long position.
- dxhdr 10y agoYour home is a durable consumer good. You spend (lots) of money maintaining it and paying insurance, because it's in a constant state of decay. Your home isn't paying you anything, quite the opposite. Maybe someone will come along later and pay you more than what you've spent on it. Maybe not. On average you're likely to get back what you paid plus inflation. It's a speculative investment at best. Now, owning a home where someone else is paying you to live there? That's an investment.