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umm, it produces shelter.
by eweise 13y ago
umm, it produces shelter.
- ahomescu1 13y agoYou can rent for about the same money, and still get shelter. There are convenience advantages for owning your own home, but it still seems like a bad "investment" to me.
- secabeen 13y agoTrue, but not at a fixed cost, and with no guarantee of residence. For people with families, the elderly, and people with strong community connections, the value of having a shelter that you own has substantial value. You can also customize and improve a home you own. Many people have housing needs that cannot be met in the rental market. With a home you own, you can make the modifications you need, and accept the impact to your home's value.
- ahomescu1 13y ago> You can also customize and improve a home you own. Many people have housing needs that cannot be met in the rental market. With a home you own, you can make the modifications you need, and accept the impact to your home's value. Sure, I agree with all of that. However, none of these qualify as economic investments IMHO, unless you decide to start a business out of your home. Keep in mind I'm focusing strictly on investment in economic terms (production of goods or services). I agree that the house provides various benefits to its owners, just that none of them are economic returns.
- encoderer 13y agoI think you have a very narrow definition of "investment" that doesn't match how others use it. I challenge you to explain why speculation in equities is an "investment" but speculation in real estate isn't. Suppose I create a corporation, sell shares, buy real estate, sell it for more money, and return value to shareholders. Is that an investment? I think your argument is thin here.
- ahomescu1 13y ago> I challenge you to explain why speculation in equities is an "investment" but speculation in real estate isn't. Speculation in equities is also not an investment in my book. I was referring to buying stock long-term for the dividends, not short-term speculation.