4 ms·

It is kinda wrong to see your primary residence as an investment. You can't sell it unless you find a different place to live.

• bumby 5y ago
  I don’t disagree, but that’s the reality of many Americans. Their home is their largest asset by type. This is also why home ownership is one of the largest drivers of wealth. Maybe it shouldn’t be.
  • eloisant 5y ago
    It's an asset but not an investment. It's factored in your net worth (i.e. your wealth) but it's not something you can leverage like the rest of your wealth. Note that if you're a homeowner, and the overall market goes up, you don't benefit from it at all. Your wealth goes up on paper, but it doesn't change anything in your life except it will be more expensive if you want to move.
    • bumby 5y ago
      I completely understand the distinction, but it’s not entirely different from other assets for the typical American. The two largest wealth assets are their homes and 401k/pensions. Both those groups have a lot of friction before their gains can be realized. And many people do downsize as they get older, meaning it’s less expensive to move events if their home value increased. Unfortunately, many people (just skim this thread) assume home values always go up so they consider them an investment.