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"houses and cars are assets" Technically. What matters is that the house you live in and the car you drive are not investments. Choosing expensive ones is a ba
by praptak 5y ago
"houses and cars are assets"
Technically. What matters is that the house you live in and the car you drive are not investments. Choosing expensive ones is a bad decision if you want to accumulate wealth.
At best it's an opportunity cost - you are tying up money which could become an investment. Practically it's much worse - a car is practically guaranteed to lose most its value within a few years. A house might gain value but if you want to actually realize the gains you are left without a place to live, so these gains are imaginary money.
- crackercrews 5y ago> the house you live in and the car you drive are not investments The house? Probably not an investment. The land underneath it? That's a very different story.
- praptak 5y agoIt can kinda-sorta become an investment but only if you are prepared to move somewhere cheaper to retire.
- crackercrews 5y agoYou can also downsize and stay in the same area. Not uncommon for empty nesters.
- seoaeu 5y agoYou can certainly do very well speculating on real estate, but in most places and most of the time you are better off investing in the stock market.
- toto444 5y agoIf I am correct, in the national accounts, the house households live in is considered an investment.
- walshemj 5y agoA Classic 911 is an investment and houses don't automatically lose money like cash does.