Houses: Investments or Homes?

[markusk]

IMHO a house is a home first, investment second.

You maybe able to get a "great deal" on a house, ie a bargain that will appreciate over time, but you may not like living there due to XYZ (fill in the blank).

On the otherhand, if I really like a house, and I can afford it, I would pay more than it's worth to live there. Just my opinion.

[belle103]

It's both for me though I agree at markusk that a house is a home first. I buy a house too enjoy it but also it's a great investment. Owning a house is a virtually risk-free investment compared to other types like stocks

[Broken Arrow]

Owning a house is a virtually risk-free investment compared to other types like stocks

Uh, I don't know if I'd go that far....

[disneysteve]

Owning a house is a virtually risk-free investment compared to other types like stocks

That certainly isn't true, as lots of people have been finding out recently as they try to sell homes that have lost value since purchase. Also, my stocks don't require maintenance. They don't spring leaks, need new furnaces or roofs, etc. Plus, my house is a large, undiversified investment. Given the choice, I'd much rather take 300K and spread it among various investments to lessen my risk and improve my return.

The long term return of the real estate market is far below that of the stock market. As an investment, a house is not very good at all.

[PauletteGoddard]

I view my house as a home. If I find that I need more space, I can expand or renovate, saving myself real estate and mortgage financing expenses. I don't yet know how I can upgrade to a more expensive home without increasing my mortgage, and I'd rather my investments elevate my assets and net worth, and not my liabilities.

Maybe I'll start looking at my house as an investment when the economy is blighted enough to render the SFH market prices below assessment values.

[cptacek]

This one I have now doesn't feel like a home, so I'm going to say investment. I wrestled with buying it when I moved last year, because I knew (at least I had a hunch) that I wouldn't be staying there for very long. I was moved by my company and they paid the closing costs of my last house and the inspections, etc. for the new house, so I figured I would make out even if I only stayed a year or two...this was a case of only paying for the amount of the house, not any of the additional things you pay for when you first buy a house.

This house feels like a place to sleep, but not a home.

[CafeMonkey]

I'll say both. I picked my house because I wanted a home... I wasn't shopping for an investment, or I would have chosen it based on price and future value.

And by paying down a mortgage, you are lowering your expenses for the future; which is investing!

[Marketiva]

Maybe it's a good business, yet. However the rates of estate will be move to down in the future . . . This investments are very dangerous.

[Broken Arrow]

I do want to add a related tidbit in here.

I don't think a house is neither a good home nor investment when one buys to their very financial limit. Then, you'll risk losing both in the process, or at least be very stressed about it.

I know it may seem obvious, but... it would appear that some people are willing to do just that, under the "reasoning" everybody "needs" a home.

[Fred333]

I think buying a hose should be seen as both an investment and home. When you have used the house to raise a family or lived in it for the time you nedd it is considered a home. When the time comes to sell your house, it will then bee seen as an investment rather then a home.