I'm in the same position as you. Even though we got lucky and our house appreciated 17% over 7 years, after fees it works out about a 2% return per year (and th

I'm in the same position as you. Even though we got lucky and our house appreciated 17% over 7 years, after fees it works out about a 2% return per year (and that's not even taking into account property tax, insurance and maintenance). Right now we rent and we've put our money into the stock market - it generates a much better return with much less effort. Even if you do have the capital to buy your house with cash, it's still not a good investment. Basically you are tying up all that capital that could be earning 4% per annum or more in an index fund over the long term.