Is purchasing a home an investment or an extension of family?
In the middle of the search for our pursuit of happiness we have not considered this: Think about it for a minute. What characteristics do Fools look for in a great investment? Positive cash flow, low expense ratios, low transaction fees, and historically proven returns. Using these criteria, the average house falls well short of the all-time best.
Answers:
You should not include your home as an investment, if it is your primary residence. A vacation home or investment property should be included in your investment portfolio.
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My mother-in-law bought her home for $14k and then sold it for $330k, which allowed her to move into a very nice 55+ community. So, although a house is not the "get rich quick" track, it can pay off in the end.
Also, to do it right, you need to buy and sell a house at least four times to really get something out of it. Using the appreciation of each house to buy into the next bigger/better house. Again, this not a get rich quick technique, but it will balance out your portfolio in terms of net worth.
Remember most of the wealthiest people in America did it through real estate or at least have substantial real estate holdings.
A balanced portfolio consist of stocks, bonds, international, cash, real estate, etc. If you spend your time chasing a few hot dollars around, you'll miss the boat in the end. In the game of finance, it's the turtle who wins the race.
"Poor people spend their money, middle class save it, and rich people multiply their money."
Considering the cost of rent, moving when the lease is up, the land lord raising rent when ever they ect.
You come out ahead owning your own home. In the long run you pay yourself instead of someone else.
You're an idiot!! The guy next to me renting a 2 bedroom 1 1/2 bath house is not going to have a nickel of "equity" in 5 years, where as I will. There is such a thing as a little pride of owning something rather than borrowing or renting that item.
Sure there are expenses that come with owning a home, but there is a far greater reward from owning than renting.
Go sell crazy somewhere else, we're all stocked up here!!!
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