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"You should buy a house - it's the best investment you can make!" This was the advice I was given countless times when I lived in Nebraska in the early 00's, at
by kadavy 16y ago
"You should buy a house - it's the best investment you can make!" This was the advice I was given countless times when I lived in Nebraska in the early 00's, at my first job out of college. Thank God I didn't listen.
It just didn't make any sense: I was 23 years old, had plenty of talent, and could't wait to get out of Nebraska, but I was supposed to buy a house? I couldn't think of a worse way to spend my money, time, and freedom.
Instead of spending my evenings fixing up my "house," I was blogging and learning to code. Instead of spending my money on a mortgage and property taxes, I bought GOOG & AAPL.
After a few years, a startup in Silicon Valley found me, liked my blog, and moved me out to California. Once I was done working for other people, I had enough of a stock portfolio to fund starting my own business.
If I had followed that advice, I would still be in Nebraska, would owe more than my house would be worth, and would hate my job/life.
"The best investment you can make" is always in yourself.
- evgeny0 16y ago+1 I think many people like houses as investments because they FEEL so "real" and tangible - you can touch them! Feelings are not a good way to decide what to invest in, however.
- syllogism 16y agoPeople also like houses because they've seen them go up all their life. In their anecdotal experience, it was the best investment. But the fact that house prices rocketed up in their lifetime is exactly the problem! People think it's a good investment for precisely the reason it's a terrible investment! The property bubble in Australia hasn't burst yet, so I'm still listening to this. It's painful. Sometimes I find it hard not to advise people to sell their houses now...