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I bought my house for $263K in 2002. It is currently worth around $330K. In that time I have spent about $40K on repairs (not true upgrades) for 2 new HVAC un
by lizknope 8y ago
I bought my house for $263K in 2002. It is currently worth around $330K. In that time I have spent about $40K on repairs (not true upgrades) for 2 new HVAC units, new roof, carpet, water damage, broken appliances, wood rot, lawn seed/fertilizer.
I'm happier living in a house than an apartment but my house is a place to live, and an item of value, but not an investment I expect to make profit from.
- e12e 8y agoThat sounds odd - a 10% increase in (invested) value over 16 years? Isn't that below inflation? (according to random site on the internet, it's a little below inflation: https://www.in2013dollars.com/2002-dollars-in-2018?amount=300000 https://www.in2013dollars.com/2002-dollars-in-2018?amount=30... )
- sokoloff 8y agoYou can't reasonably count things like lawn maintenance, carpet, water damage, wood rot, and broken appliances as part of the investment...
- _ah 8y agoSure you can. If you were renting it out instead of living in it, all those costs would have to be paid on behalf of the tennents. It's part of the cost of doing business. So whether you rent or buy for yourself, it's all part of the investment calculation.
- sokoloff 8y agoIt’s part of the natural expenses of owning a house, but is not relevant to an anticipated inflation-based increase in value of the underlying asset.