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They're only an investment if you buy more housing than you need. After all, you need housing, so when you sell that home at increased value, you will need to u
by Joeri 14y ago
They're only an investment if you buy more housing than you need. After all, you need housing, so when you sell that home at increased value, you will need to use that revenue to buy new housing which has also risen in cost.
In short, only if you can sell your home and buy a cheaper home can it be considered an investment. Otherwise it's just non-liquid capital.
- plorkyeran 14y agoIn theory, if you buy enough housing to fit a few kids then you'll have more housing than you need by the time you're looking at retirement, so you can cash out your 'investment'. Of course, in reality this never seems to actually happen.
- theorique 14y agoLots of people are doing this / have done exactly this. My parents and many of their generational peers (boomers +/- 10 years) did the large house thing in the 1960s-1980s in order to raise the kids, then sold their large house and moved to a smaller house or condo as the kids moved out in the 1990s-2000s.