Why your house is a terrible investment
jlcollinsnh.com
Why your house is a terrible investment
1–10 of 15 posts
Re: Why your house is a terrible investment
#2Depends on when u buy ...bought my first one in 2019 and sold it in 2022 ..making a $215k profit in Pennsylvania.
You could get very lucky and buy before a boom tho they don't happen often. Historical Low interest rates drove that boom. I Am missing my three percent rate I had on my first house.
Re: Why your house is a terrible investment
#3If you view your house as an investment first and a place to live second, then yeah, it probably will be a bad investment especially with interest rates, maintenance costs, and insurance rates remaining high.
That being said, I do enjoy being a homeowner more than a renter. No shared walls, no waiting for maintenance, no worrying about whether the landlord will increase my rent by a lot, and I have a back yard for plants and a fire pit. Never got that while renting.
Re: Why your house is a terrible investment
#4It is true there are some downsides to home ownership. But if owning a home is such a horrible investment then why are so many buying up single family homes to turn into rentals? Personally our home has doubled in value over the past ten years. Of course that fluctuates but it is real.
Re: Why your house is a terrible investment
#5In a vacuum, sure it's a bad investment. A house as described in the article is basically one that you buy and neither live in nor rent out. An empty and unused house is indeed a bad investment.
When people say a house is a good investment they mean, "Given that people need someplace to live and will be paying the cost and maintenance for lodging, a house is a good investment since that cost benefits an asset you own".
Re: Why your house is a terrible investment
#6I am trying my best to read this site on Safari for iPhone but god the ads on this page are something. I get it, I am not against ads but sites like this are why I begin to get annoyed so much so than I’d rather not learn the content than dealing with distraction of ads and the accidental clicks on the page. Sorry, I hate to say it but if you this your page, do better.
Re: Why your house is a terrible investment
#7If you view your house as an investment first and a place to live second, then yeah, it probably will be a bad investment especially with interest rates, maintenance costs, and insurance rates remaining high. That being said, I do enjoy being a homeowner more than a renter. No shared walls, no waiting for maintenance, no worrying about whether the landlord will increase my rent by a lot, and I have a back yard for pl…
Yeah. If instead you buy a house on leverage to rent it out, it can be a decent investment. If you're lucky the down payment is your only cost and the renter will pay for everything else.
And you get good tax benefits.
And if you make it a short term rental and do things right you can deduct the depreciation against your W2 income. This can be a massive benefit if you do accelerated depreciation.
It still won't be a great investment unless there is significant appreciation...
Re: Why your house is a terrible investment
#8It is true there are some downsides to home ownership. But if owning a home is such a horrible investment then why are so many buying up single family homes to turn into rentals? Personally our home has doubled in value over the past ten years. Of course that fluctuates but it is real.
I guess it's a good investment if you are able to cash-out but, often, you still have to buy another house which has also doubled in value?
Re: Why your house is a terrible investment
#9I'm glad I didn't listen to this article back when I bought my house. I pay less in mortgage payments per month than nearby two-bedroom apartments pay in rent and my home value is 3x what it was when I bought it.
Re: Why your house is a terrible investment
#10I am trying my best to read this site on Safari for iPhone but god the ads on this page are something. I get it, I am not against ads but sites like this are why I begin to get annoyed so much so than I’d rather not learn the content than dealing with distraction of ads and the accidental clicks on the page. Sorry, I hate to say it but if you this your page, do better.
Perfect for me, but I run kablock and wipr....