U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 06-09-2012, 12:25 PM
 
Location: Tempe, AZ
181 posts, read 412,232 times
Reputation: 301

Advertisements

I guess this question should go into this forum. I was wondering why so many people think of houses more as investments than actual homes to grow their families. Do people still actually buy homes to live and raise a family in? It seems like the first thing on most peoples mind is they don't want to do too much to the house if they aren't going to get a nice return on it when it's time to sell.

So my question is, why do the majority of people look at houses as an investment rather than a family home? Do you think it's risky business to think like that?
Reply With Quote Quick reply to this message

 
Old 06-09-2012, 12:28 PM
QIS
 
870 posts, read 3,816,059 times
Reputation: 518
It's both!
Reply With Quote Quick reply to this message
 
Old 06-09-2012, 12:32 PM
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,958 posts, read 18,581,380 times
Reputation: 6361
It's because the National Association of Realtors tells people it's the biggest investment they will make in their lifetime.
Reply With Quote Quick reply to this message
 
Old 06-09-2012, 12:41 PM
 
Location: North Beach, MD on the Chesapeake
32,178 posts, read 39,371,496 times
Reputation: 40699
I don't know about "majority" but certainly many do. That is usually what happens when you have a bubble like the one that blew up a few years ago.

I laughed reading the comments on here about it like it was the first time it had happened. Mrs. NBP and I have friends who got caught up in the housing bubble of the late 80's that crashed around 1991. All they could talk about was how much money they "made" trading houses every 6 or 8 months. Of course they lost their asses when it crashed down. Same thing that happened in the most recent meltdown, to some of the same people.
Reply With Quote Quick reply to this message
 
Old 06-09-2012, 12:41 PM
 
Location: Cary, NC
31,693 posts, read 55,531,149 times
Reputation: 30271
Financial wisdom comes in many shapes and sizes.

To be blind to the investment dynamic in a home can be a costly error, and one which many folks are unprepared to pay for.
But to ignore the emotional value of a property being your personal homeplace can make for a very dry life.
Reply With Quote Quick reply to this message
 
Old 06-09-2012, 12:52 PM
 
Location: Tempe, AZ
181 posts, read 412,232 times
Reputation: 301
Quote:
Originally Posted by MikeJaquish View Post
Financial wisdom comes in many shapes and sizes.

To be blind to the investment dynamic in a home can be a costly error, and one which many folks are unprepared to pay for.
But to ignore the emotional value of a property being your personal homeplace can make for a very dry life.
Exactly. There has to be a balance. However, the scale should tip more to the emotional side of it.

My cousin for an example got a new house years ago and is now doing horribly on payments and upkeep. However, her and her kids had a HOME before getting this new house. She said she wanted something new. I told her just update the house to match your wants and needs. To her that wouldn't be a good investment.

So my follow up question is, has anyone purely looked at their house as an investment or home?
Reply With Quote Quick reply to this message
 
Old 06-09-2012, 12:59 PM
 
Location: North Beach, MD on the Chesapeake
32,178 posts, read 39,371,496 times
Reputation: 40699
Home. The fact that the value has skyrocketed (and really didn't drop much due to the meltdown) means absolutely nothing as we aren't selling.
Reply With Quote Quick reply to this message
 
Old 06-09-2012, 01:25 PM
 
Location: NH Lakes Region
343 posts, read 1,390,739 times
Reputation: 414
It's a home, and it is something I can afford. I was unfortunate enough to find it right before the bubble peaked and popped, but since I have no intention of selling, the fact that it lost about 25% of it's value in the past seven years is not a major concern of mine. For the beginning of the devaluation period, my taxes took a nice dip also...(I know this can't last, as the tax rates are climbing to cover the losses).

I realize that it is considered an investment by many, but for me it is an investment only in that it is a roof over my head that has a pay-off date - and at some point I will need only taxes and repairs/upkeep to keep it - not a rental payment that will never go down. (the bright spot has been constantly lowering interest rates... I've managed to cut my payments and payoff timeframe by half).

For me, my home is a refuge and a creative project and a place to enjoy with friends and family.
Reply With Quote Quick reply to this message
 
Old 06-09-2012, 01:37 PM
 
2,401 posts, read 3,817,786 times
Reputation: 2169
Quote:
Originally Posted by QIS View Post
It's both!

That's right... best of both worlds...

Why not have the cake & eat it too???
Reply With Quote Quick reply to this message
 
Old 06-09-2012, 03:14 PM
 
2,624 posts, read 4,126,290 times
Reputation: 1876
Home. It should not be an investment. That's partly the market crashed. You need an actual place to live and houses should be just that
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top