Why? Because they use it instead of renting?
Discussion
No because you always need to live somewhere. If your house goes up in value with 50% the rest of the houses would also have gone up with 50% so it’s just nominal gains but no real gains.
What if your area increases more than others? What if you do work on the house and increase it through that? When does an investment have to generate profit and what if it decreases your cost of living. I dont own my house anymore but I think your own house can be an investment even if you live there. Mine was so far financially the most impactful investment I have ever made.
Good point and I agree in some examples but the thing I have a problem with: I have a house in a popular area. My house increases more in value than the houses in for example more criminal areas. 100% true. But are you going to sell yours and move to a more criminal area? Are you gonna move to a smaller house? Are you gonna move to a less luxurious house? I don’t think so. Because going up in lifestyle is way more easy than coming down.
I see it as an investment in your life and joy in life. But please don’t buy a very luxurious house, put all your income in a mortgage so you can barely buy it and say then that it is your investment. It’s just a lie people tell themselves.
Rather have a more decent house, less luxurious and a bit smaller. So you can invest the rest of your money and enjoy a bit of the things in life.
Agree 100%
That’s true. But you can always sell your $2M house to buy a small hut by the side of the beach in Costa Rica!
Agree on that! But I don’t think that this is the case for majority of people 😅
