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Remember, it's not an investment unless you can sell it and spend the money.
A rent house is an investment, plain and simple. A vacation cabin is an investment, plain and simple. A 1962 Jaguar E-Type roadster is probably an investment.
Your primary residence is not an investment unless you plan to sell it and move somewhere much less expensive. You have to live somewhere.
For the vast majority of people their primary residence is a fixed expense; one which usually is less expensive than renting (but not always; which is why one should run the numbers and factor the numbers into a decision - although the numbers should not be the ONLY factor!)
That's the financial angle. Your house serves many other purposes as well, but its financial status is that it is NOT an investment; it is fixed overhead.
I agree with this.
how many people buy a house, sell it and pocket the money with a huge profit?
I think you have to be 55 to keep it, (maybe depends on state).
but you have to always live somewhere, so I agree with this post.
nah, im not buying that. how often does that really happen??
my parents bought a brand new house in 1965, they, along with 6 other families, are still the original owners on the block................................
not everybody moves...
im for the "its your house, do, buy, get what ever suits you and your family, worry about resale when you have to...........................life it way to short to worry about what a potential buyer somewhere down the line will want, or like, or if HGTv will still be on
People who bought a house in 1965 lived in an era where it was not uncommon to work for one company your entire working life, and for a family to be able to live comfortably on a single earner's income. Now, with so many more two income families juggling two careers, it's pretty unusual for families to go for decades without ever needing to move and sell a home.
Which doesn't mean people shouldn't live in home that they love and that works for their own family. But it's also disingenuous to think that it's fine to think that it will never be necessary to sell a house. I would disagree that recognizing that amounts to "being obsessed with resale" when I think it's just an acceptable of reality.
And I think the things that people tend to take into consideration are generally not too outrageous, like not eliminating windows or bedrooms or removing an "extra" bathroom or turning a master bedroom into two small bedrooms and not having any master bedroom. I think that if you are going to start to make changes along those lines, the reality is that the house isn't working for your family and it might be better to think about selling it in order to buy a house that does, rather than taking away things that are pretty objectively considered functional and desirable.
ok, I mean, I get it. You want to maintain or increase the value of your property over time and homes are considered an investment. But people rarely consider the resale value of a vehicle when deciding on it. And with the exception of very few brands, car values sink like a rock where as homes tend to trend up.
Why don't more people consider their families individual needs rather than just maintaining resale value? If you need if you find yourself in need of 4 bedrooms and you only have 3, turning your absurdly large master into 2 rooms could be an option but then people say but my resell. Or you really need more closet space and upstairs laundry instead of another bathroom.
Maybe I don't really get it.
A car is not like a house.
Very few cars gain value as they age. Some may not depreciate as fast as others but 99% of vehicles rarely gain value like a house.
People who bought a house in 1965 lived in an era where it was not uncommon to work for one company your entire working life, and for a family to be able to live comfortably on a single earner's income. Now, with so many more two income families juggling two careers, it's pretty unusual for families to go for decades without ever needing to move and sell a home.
Which doesn't mean people shouldn't live in home that they love and that works for their own family. But it's also disingenuous to think that it's fine to think that it will never be necessary to sell a house. I would disagree that recognizing that amounts to "being obsessed with resale" when I think it's just an acceptable of reality.
And I think the things that people tend to take into consideration are generally not too outrageous, like not eliminating windows or bedrooms or removing an "extra" bathroom or turning a master bedroom into two small bedrooms and not having any master bedroom. I think that if you are going to start to make changes along those lines, the reality is that the house isn't working for your family and it might be better to think about selling it in order to buy a house that does, rather than taking away things that are pretty objectively considered functional and desirable.
*** OMG, yes, you hit the nail on the head, your completely correct, and I absolutley agree with you.
***yes, I totally agree with you on that, and that makes complete sense, if you have to make that drastic and severe changes to a house, your right, the house might not be suiteable.
I just feel that since HGTV people are not really enjoying thier home and doing what they like, because re sale is on thier minds, when they are making changes.
Even if changes are made to today's living, who's to say that if a person sells 10 years from now, the style most likley will not be just that, in style.
and yes, I do agree, you have made very valid points in this response.
My mother is up there and me and my sister will be selling thier home, im sure within the years to come. My mothers kitchen was updated in the 80's, to what was in style then. When I put it up for sale, I'm not going to renovate anything, as I obviously wont know the taste of the next buyer, I'd rather have the price reflect, and let the new "woman of the house" pick out her own dream kitchen.
My moms kitchen is clean and functional, just stuck in the 80'3....
I know we will still get a good price as it is prime area, and good schools, so that does count for something. The rest of the house is a regular house.
the only thing I will do to make it look nicer is re-paint it all a neutral color with the white trim, since that seems to be the "rage" now. (I like to paint, so thats not a problem, and other than the tall hallways, its a fairly easy house to paint.
Now, if I can get my Mother now to re-paint that would be a godsend....dear lord.......
**lol, no seriously, I really dont know that many people that sell that often, well, maybe my uncle, so i will give you that.
** Im not disagreeing with you on that, but people still have to make thier home thiers, you know that
Oh sure but lots and lots of people move, and they move pretty often. Actually though, I guess factoring in the recent economic instability, the average time people stay in their home is now up to ten years (it used to be seven from what I recall). That's the AVERAGE so of course many people stay longer and many people stay shorter.
And yes, I agree that people can do whatever the heck they want to do with their own property, within the law or bylaws, but the thing is, nearly every single house is going to go on the market someday, so personally I believe in finding that balance between making a house our own, and considering resale value.
As I've shared, we bought our house five years ago for far below market value - for an updated house, but our house was not updated. We have put a lot of money into it over those five years, but we have always kept a close eye on resale value, as well as normal maintenance (for instance, we didn't factor in the $5000 we spent on painting the trim and siding on the exterior because that is normal maintenance, but we did factor in what we spent on cabinets in the kitchen because that was more along personal likes and dislikes). We have just now tipped the scales with our most recent project, so if we want to break even or "make money" on this house, we'll need to stay in it another year or so (home values here are appreciating at about 6 to 8 percent a year, which is sort of alarming actually but OK). But regardless of whether or not we "get every bit of our money back" I wanted this latest project to be done, so we're doing it. Oh well. And we'll enjoy it.
People who bought a house in 1965 lived in an era where it was not uncommon to work for one company your entire working life, and for a family to be able to live comfortably on a single earner's income.
I think some of it is location dependent. I think, based upon limited data, that people in New England tend to settle in for longer periods.
My parents bought their house in 1961 and lived in it thru 2017.
The "new" next door neighbors have lived there for 27 years.
And, the couple in the "new" house across the street for 20+.
Oh sure but lots and lots of people move, and they move pretty often. Actually though, I guess factoring in the recent economic instability, the average time people stay in their home is now up to ten years (it used to be seven from what I recall). That's the AVERAGE so of course many people stay longer and many people stay shorter.
And yes, I agree that people can do whatever the heck they want to do with their own property, within the law or bylaws, but the thing is, nearly every single house is going to go on the market someday, so personally I believe in finding that balance between making a house our own, and considering resale value.
As I've shared, we bought our house five years ago for far below market value - for an updated house, but our house was not updated. We have put a lot of money into it over those five years, but we have always kept a close eye on resale value, as well as normal maintenance (for instance, we didn't factor in the $5000 we spent on painting the trim and siding on the exterior because that is normal maintenance, but we did factor in what we spent on cabinets in the kitchen because that was more along personal likes and dislikes). We have just now tipped the scales with our most recent project, so if we want to break even or "make money" on this house, we'll need to stay in it another year or so (home values here are appreciating at about 6 to 8 percent a year, which is sort of alarming actually but OK). But regardless of whether or not we "get every bit of our money back" I wanted this latest project to be done, so we're doing it. Oh well. And we'll enjoy it.
You bought what I call a fixer upper and have resale at some point in mind. Not everyone does or cares. We live in our houses, adjust them to our specific needs and when it is time to go they go. Until then they are our nicely feathered nests and I refuse to keep tally on what is maintenance and what is resale.
You bought what I call a fixer upper and have resale at some point in mind. Not everyone does or cares. We live in our houses, adjust them to our specific needs and when it is time to go they go. Until then they are our nicely feathered nests and I refuse to keep tally on what is maintenance and what is resale.
It's not that hard to "keep tally." Not for me, anyway. It's not like I keep an Excel spreadsheet on it. I feel very comfortable with our balanced approach to what we want and what we should spend based on resale value. I'm OK with going over a bit, but what I'm not OK with is spending money on things that actually degrade the value of the property.
We didn't set out to find a fixer upper. We did, however, set out to find a house with good bones and layout that works for us and will continue to work for us. We also wanted to pay a fair price for a house - not a bargain and not too much - just a fair price. This house has great bones - it just needed a cosmetic overhaul.
I always consider eventual resale value - personally I would feel irresponsible NOT considering it. I've x-ed out many homes due to location, something problematic (around here having an upstairs master is the kiss of death, and having no garage is a big negative too), etc.
We did not buy a "fixer upper" to flip or make money on. I always consider resale value on any property I buy. I don't have to make money but I dang sure don't want to lose money.
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