Is Your Home A Good Investment?

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"Imputed rent", the term used in the article to represent the amount of rent you would have had to pay if you didn't own, should be the main benefit of owning a home. That, plus the benefits of not having a landlord and being able to do what you want with the property (as long as it doesn't violate zoning or HOA rules). Rising home values should be treated as gravy only, an extra. Too bad many people were counting on rising home values to pay off their stupid exotic loans by refiing them after the value of the house went up but before their payment did.
 
This really isn't a very good article. It's already been shown that houses DON'T go up in value over time in the long run, and it is in fact impossible for them to go up in value faster than the rate of inflation over the long run, or nobody could ever afford them. Housing prices in the long run must track people's incomes.



The article is trying to make this point without really understanding why it's true.
 
I just know that my home isn't an investment, it's my home. It may be a bit too simple for most because I bought it to live in it for an indefinite period of time, don't intend to take money out of it and will have it paid off far before retirement. If more people thought of their homes this way, much of the mess we are in today would not have happened.
 
Although my mortgage is severely upside down when comp with other recent sales but my home is just one of a kind and there is not another one like it in all of OC.



I did lose a lot of money from an investment standpoint but the emotional satisfaction is often something money can't buy. For the last 3 years, I found much happiness living in this home than the 20 years I lived in Irvine.



My home is a good spiritual investment.
 
what a bad writer... I had a hard time following his story; it is a simple premise, and we all know about historical appreciation models/percentages... for a Wall Street Article it is a new low...



The guy assumes that we all pay full cash for our houses; when you figure in leveraging, and investment-rental houses; they can yield 35%-40%; try getting that in any mutual fund!



Also, as I mentioned in the IE thread; the whole aspect of having Inflation eat away at your mortgage...



Yes, you house is your biggest liability not asset; correct... but he didn't even argue for the other side.. what a moron..
 
[quote author="Anonymous" date=1243554559]<A href="http://online.wsj.com/article/SB124336746233955539.html">http://online.wsj.com/article/SB124336746233955539.html</A></blockquote>


A home is an excellent investment.

Houses and rental properties are another question in these times.
 
When we have owned in the past, and when we purchase again, our home will be both an investment and our home to live in. Whether they acknowledge it or not, a home purchase will probably be the largest investment most folks ever make, both financially and in their personal comfort.
 
Shiller's article on the same topic

<A href="http://www.nytimes.com/2009/06/07/business/economy/07view.html?_r=1">http://www.nytimes.com/2009/06/07/business/economy/07view.html?_r=1</A>
 
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