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IMO, the truth is somewhere in the middle. Buying a house is not like buying a car, and it's not like buying a certificate of deposit.
People should re-evaluate why they are buying a house. I will buy a house because: I want a home, I like the location, and I like the house. But, I would be very surprised if the house hasn't appreciated in value in 15-20 years, (at least somewhat) when/if I decide to sell.
If you only plan to stay at a location for 5-10 years, and you're worried that buying a house isn't a good investment, you should probably rent. That way, you'll know exactly how much money you will lose.
IMO, the truth is somewhere in the middle. Buying a house is not like buying a car, and it's not like buying a certificate of deposit.
People should re-evaluate why they are buying a house. I will buy a house because: I want a home, I like the location, and I like the house. But, I would be very surprised if the house hasn't appreciated in value in 15-20 years, (at least somewhat) when/if I decide to sell.
If you only plan to stay at a location for 5-10 years, and you're worried that buying a house isn't a good investment, you should probably rent. That way, you'll know exactly how much money you will lose.
Even if a home appreciates in value in 15-20 years you have to take into account the money spent on taxes, interest, Maintenance etc.. to own your home. Once you deduct those amounts from any appreciation in value you almost positively will not come out ahead.
Even if a home appreciates in value in 15-20 years you have to take into account the money spent on taxes, interest, Maintenance etc.. to own your home. Once you deduct those amounts from any appreciation in value you almost positively will not come out ahead.
When choosing a place to live, you have the option of owning or renting. (am I forgetting an option?) Sure, you may not come out "ahead" when owning, but you are guaranteed to lose money when renting.
When things were good they were good. Not going to lie, made a lot of money in real estate. Same thing would not be happening now. Heard this morning that home values around the Country are going to drop again. I actually want to sell one of my rentals, but even though i would make money on the home, not where i want it to be, still that stupid mentality. I am making good money right now with renting two of my homes out. Really want to sell one, not now, but when!
Location: planet octupulous is nearing earths atmosphere
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Quote:
Originally Posted by DairousTheGreat
Well, I will take this with a grain of salt being that you are a real estate agent.
If you take into account all of the money homeowners put into maintaining a home ,over time, it is NOT an investment.
^^^in some cases,?? people build houses and sell them for a profit all the time.. location, location, location..
i know some people that built a 500,000 dollar home and had like 200,000 thousand in maintenance over 20 year period,, but when they sold it, they got 2.1 million.!!>> and rebuilt a new house in the same highend neighborhood and had a good chunk left over..
^^^in some cases,?? people build houses and sell them for a profit all the time.. location, location, location..
i know some people that built a 500,000 dollar home and had like 200,000 thousand in maintenance over 20 year period,, but when they sold it, they got 2.1 million.!!>> and rebuilt a new house in the same highend neighborhood and had a good chunk left over..
It isn't like that anymore especially with resales. The reason you can build a NEW home and make a profit, because people get ripped off when buying new homes. It costs about 100K including labor to build a house that you can sell for over 400K. It's a bloated rip off and always has been.
When choosing a place to live, you have the option of owning or renting. (am I forgetting an option?) Sure, you may not come out "ahead" when owning, but you are guaranteed to lose money when renting.
"Right now" is an unusual situation. Housing prices were overinflated because of the housing bubble, and then declined quickly when the bubble burst.
If people stopped looking at a real estate purchase as an investment, and returned to the days when they were buying a home instead, we probably wouldn't be in this mess. But, IMO, homeownership is still a better "investment" than renting.
"Right now" is an unusual situation. Housing prices were overinflated because of the housing bubble, and then declined quickly when the bubble burst.
If people stopped looking at a real estate purchase as an investment, and returned to the days when they were buying a home instead, we probably wouldn't be in this mess. But, IMO, homeownership is still a better "investment" than renting.
Yes it is better than renting, but the days of making money on your home are long gone IMHO. Now maybe we can get rid of realestate agents and brokers as well, they are a scam anyway.
You guys know there is a real estate forum, right?
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