Is a house a good investment?
Is a house a good investment?
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$BLOC$ Is a good investment in my opinion.
All eggs in one basket, only matches inflation long term, can be hard to liquidate etcetc
No actually its not, but can be.
A good investment produces returns in the form of appreciation and income.
A house will introduce something called property taxes and that can fuck you hard. This depends heavily on area though.
Houses don't really produce income unless you live in the basement and rent out the upstairs or something.
Assuming you are renting, look at the price of rent vs (property taxes + interest) you would pay monthly. Add in the fact that some of your money will be locked away and not producing income (downpayment) as well as monthly payments (that build equity).
TL;DR: Yes, if rent is much higher than property taxes + interest payments and you don't mind staying in the area.
Depends on your goals
So far very helpful. Thanks guys.
In my area it's definitely better to rent, and especially since I'm in my early 20's. I know there's the ideal goal of having a nice long-term house for your family to grow in, but I just don't see that being such a great idea considering how volatile things are these days.
welcome to my zillow-assisted couch cruise i just spent 45 minutes looking at house to rent > buy because fuck that shit. some pretty interesting houses out there if you're willing to plop down in some random neighborhood
How much do you own when it comes to furniture and stuff to use in your house, and how often do you move?
Of course, but it depends on the market. However a mortgage is never a good idea.
once every two years. i got enough for a 2 br house. 3 br is kinda pushin it. i'd have to buy odds and ends but i think it could be fine with what i got.
Real estate can only go up, right!?!? Look at Canada, YTD growth on real estate 10%+ years on end
A buddy of mine has a mortgage at a very low rate on his section 8 housing complex, 3.5%.
He gets practically guaranteed checks from the government each month and it more than pays for his expenses.
there's going to be another bubble soon
For normal people excluding degenerates, mortgages never make financial sense. Same with car loans. You can buy a cheap car and save money to have a brand new car 5 years from now. Or you can get a car loan for a new car now and in 5 years have a 5 year old car worth $5,000 that you paid $35,000 for after interest.
See, you should have said "A mortgage is never a good idea if you're the one that has to pay for it".
Now he's got you.
Until a nigger trashes it of course
mortgages never make financial sense
That's not true. Mortgages make financial sense when the all in cost is still cheaper than rent. Especially if it's a conventional mortgage without PMI.
I'd spend roughly $20,000 more over the next five years renting vs owning my home.
comparing home loans to car loans
Rich dad Poor dad
Yes if derelict
No if smart with good goals.
Anyone who tries to tell you otherwise has no idea
So if you buy a home to live in yourself, you shouldn't think of it as an investment. It costs you money each month. A personal residence is just a means to lower your housing costs over the long term and hedge against inflation.
But buying the right home at the right price and renting it out can be an excellent investment.
Most likely a terrible one.