IDK...the ones that I've bought and sold have done pretty well. Better than any "terrible" savings account I ever had/have.

Take out the past 4 years, those are an anomaly, and look at the lengthy history of appreciation of home value along with insurance, taxes, and maintenance.

If you simply lived in your home for 30 years and paid it off, with zero $ for maintenance, and it followed the typical 3-4% gain per year that would amount to $324,000 value, so a gain of $224,000. Subtract 2% for taxes over 30 years, let’s keep it simple and just say you only paid taxes on the $100,000, that’s $60,000 in taxes, now we are down to $164,000. Let’s use interest at 7% as that’s a pretty common rate over the past 30 years, that’s $139,500 in just interest, leaving you just $24,500. Still have to factor in insurance.

"Take out the past 4 years, those are an anomaly, and look at the lengthy history of appreciation of home value along with insurance, taxes, and maintenance."

Add in the fact that most people would spend that money frivolously which they are not spending on their housing and instead of investing it. Home ownership and its accompanying mortgages provide home owner discipline. Something too many are in need of.

Collaterally, it also instills pride in ownership.

Is there a difference in the cost of an appraisal on a new build vs. an existing home?

Should be because a proposed house should I Clyde two analysis as proposed and as complete.

Tell me about it paid that bill last night lol

Dang you BP!

You are paying for those property taxes and insurance whether you own your home or rent it. If renting, it is built into the rental fee. I know quite a few people that have rented the same home for over 20 years. They have been paying those property taxes, insurance and probably the owners interest on the note (assuming he had one) as part of their rent. The difference in renting and owning is the owner has equity at the end of the day and the renter is still at $0. There are better investments out there with discretionary income but you are paying to live somewhere whether you rent it or own it. Land owners are not losing money for you to live in their house.

Now think about it… if you hadn’t bought a home and were just renting you would have paid more money and been holding an empty bag at the end of the day. People rent out homes for income… that means the rent is greater than the cost of operation…

That’s like saying ag exemption is t worth anything because you don’t make much on hay or cows and completely ignores the tax savings.

Maybe that's the key. Don't keep it 30 years. Longest I have a kept a house is 6 years. I agree the last 4 years have been the anomaly for sure.

I’m not saying don’t buy a home, absolutely go buy a home. But the old adage of thinking a home is an investment is simply wrong. Like I said, at best it’s a poor savings account.

The average is 7 years. So you’re right there at it. Seeing as how you pay considerably more interest at the beginning of the loan than the end, it’s extremely hard to make any gains in 7 years.

If your current house has gone up $150,000 in the last 4 years that’s great, sell it and go buy another house, you won’t be dollars ahead though unless you make a drastic change in the home you’re purchasing. We built our house for $409k in 2017. We can sell it today for $759,000, pretty good return, but to replace this house where we want to live would be $900,000 so we would be in the hole. To replace it where we would settle for would be $700-$800k.

Here’s your 7 year numbers

You’ve paid off $10,000 of the loan, but over $45,000 in interest while only gaining $31,000 in “equity”

Absolutely it’s worth it. Depending on your goals with the property determines how you achieve that exemption and how you make it profitable.

That may be true, but I doubled my money on my home from 1998-2010, made 40% return from 2011-1016, and am up almost 20% from 2017-present. No savings account I've ever had came close to that.

Ive done good...........but my approach has been different

but have you sold it?

Fade, I'd love to learn about your strategy/approach. Feel free to PM if you prefer.

Oh Doc..........the time period has passed......unless they go to 100 year mortgages.

Im a precautionary tale

I think his post references two sales and he can sell the 3rd one later, whenever he wants, and still do well.

Gotta love the realtor telling us all how poor is the investment he sells.

Lol kinda what I was thinking. What other investment can you get that also provides you a place to live?

I’m all for investing in real estate, and there are tons of ways to do it. But too many people have grown up being told their home is their biggest investment. I think the term “investment” is misused and instead should be replaced with “asset” because if it’s not generating passive income every month, is it really a good “investment”?

Buy a second home or third home and let tenants pay it off while you collect a few hundred or more every month.

If I called you and said I want $4,000,000 in insurance coverage for my $700k home, would you just sign me up or try to educate me as to why that’s too high?

Generally investing on land you make no real return till you sell, so you can’t invest invest in land?

It might be investment you don’t like but that might be the end of it.

Huh? Can somebody translate? You’re talking like 2Beez

Don't you bring me into this. You made a [censored] show out of an appraisal thread. Color me shocked