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Is home ownership a good investment?

Daryl 2011/03/31 19:21:46
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Home ownership is a bad investment
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The U.S. economy has changed.

Home ownership may be one of the worst investments you can make.


Is home ownership a good investment?
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Top Opinion

  • Daryl 2011/03/31 19:22:56
    Home ownership is a bad investment
    Daryl
    +6
    I do not have faith in the long-term stability of the U.S. economy.

    Home ownership was a good investment when the U.S. economy was growing, when population was growing and when the US government spending was not putting the stability of the country in jeopardy.

    economy growing population growing government spending stability country jeopardy sell your home

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  • Brosia 2011/06/09 17:18:13
    Home ownership is a good investment
    Brosia
    +1
    If you can afford the payments, that is. Hardworking people that own a slice of the American dream is a great investment, but when people are talked into a mortgage that they cannot afford, that is a bad idea all around.
  • Christopher Dresbach 2011/04/12 22:08:55
    Home ownership is a good investment
    Christopher Dresbach
    +1
    If you can afford to pay cash like the wise people use to do, yes, and if you an afford to pay your property and scholl taxes. Personally, I hate the ideas of loans and credit period.
  • LesWaggoner BN 1 2011/04/09 09:23:26
    Home ownership is a good investment
    LesWaggoner BN 1
    +1
    Now that prices are returning to normal.
  • La 2011/04/07 13:13:32
    Home ownership is a good investment
    La
    +1
    As long as you're smart about it. If you buy property that's depreciating in value, then it's not a good investment >.>
  • Tom Dundee 2011/04/04 04:07:29 (edited)
    Home ownership is a good investment
    Tom Dundee
    +2
    It can be, I have loan at 5% and it's value doubled since 2000.

    Buy Sensible is the secret.
  • crewzer1 2011/04/03 16:57:06
    Home ownership is a good investment
    crewzer1
    +2
    Especially if it's made of stone or Brick, so that you can be sure of it's Durability.= reliability
  • Cat 2011/04/02 17:42:05
    Home ownership is a good investment
    Cat
    +2
    It is a personal choice for many people......I like owning a home rather than renting.....
  • Willie 2011/04/02 05:44:16
    Home ownership is a good investment
    Willie
    +2
    Along with providing you with a roof over your head, home ownership provides you with a sense of security and investment in your community. It might not be the best investment ever, but you do have the obligation to pay into it every month, and eventually you will have some equity in the home instead of just a pile of rent receipts.

    Right now is probably a good time to buy in most places in the U.S. Find a home you can buy for a small downpayment and little, if any, more than your current rent as a mortgage/tax payment. Then hold onto the house. You really can't lose. You'll get the tax deduction of the interest paid and you'll build equity (unless the home declines in value). If you do buy a home that loses value, you can always wait for the market to improve before selling (rent it out if you have to move).

    Like I said, there may be better investments, but you can't live in any of them, and you'd need to have discipline to keep contributing to them.
  • Andrew 2011/04/02 05:31:43
    Home ownership is a bad investment
    Andrew
    +1
    Now that the economy sucks, I think it would be hard.
  • TJ 2011/04/01 20:48:18
    Home ownership is a good investment
    TJ
    +2
    If ever there were a time for an undecided button, this would be it.
    Is a Graduate degree a good investment?
    How about a guitar?
    A snow shovel?

    All are taxed (and taxing) to different degrees.
    All can make you money, depending on who you are, where you are, and what you're able to do with them.
    Also, if you have to take out a loan on any of the above, you introduce a new criterion for measuring the ROI. Probably a bad investment if you cant find a job, are tone deaf, and live on the Florida coast... but even then you might be able to sell your guitar for more than you bought it, and set up a sand-removal business.
  • Leeaqua 2011/04/01 14:39:01
    Home ownership is a good investment
    Leeaqua
    +2
    Property is the only thing that you can't make more of !
  • IronOx 2011/04/01 13:40:43
    Home ownership is a good investment
    IronOx
    +3
    Now is the time to buy if you have the money. Buying in a bottomed out market is a much better investment than at the top of the market.
  • JanHopkins 2011/04/01 12:48:01
    Home ownership is a bad investment
    JanHopkins
    +1
    The initial cost is nothing compared to rising taxes, repairs and upkeep. A house is an incredible burden but for some people apartment living is not an option.
  • chris hynes 2011/04/01 10:58:15
    Home ownership is a good investment
    chris hynes
    +2
    I don't know much about the American home ownership situation, but here in Australia it's a typical situation like this. We purchased our home, 5 years ago, about an hour north of Sydney, it is 10 years old, 5 bedrooms, swimming pool, study, cellar (5,000 wine bottle capacity), double garage, close to work and shopping malls and cost $AUD 650,000. We pay the bank, approx; 2,000 dollars a month (wages over here are better than in America, even allowing for international market rates). Because of the size of the loan, (which we will pay back, as we both will soon inherit), the bank provides, free of charge, hired help to clean the place, twice a week, and a gardener. I work about 65 hours a week, and my wife about 40 hours. The cleaning people will also, cook dinner if you 'phone them before 1.30p.m. The reason the bank picks up the tab for all this, is it doesn't cost them much in the great scheme of things, and because we are earning good salaries, there's less chance of foreclosure, which would mean the bank would then have to sell at less the market rate. We have 97% home ownership in Australia, with less than 1% forced sales, which makes us the lowest in the world. I couldn't imagine living anywhere else in the world.
  • La chris h... 2011/04/07 13:18:06
    La
    +1
    I know right. I love Australia.

    Adelaide represent :)
  • MW121 2011/04/01 08:34:42
    Home ownership is a bad investment
    MW121
    +1
    Today it is.... However it'll come back so if you've got cash, buy buy buy...
  • Rick 2011/04/01 08:11:50
    Home ownership is a good investment
    Rick
    +2
    Especially when you have to hear the misbegotten stories of overextension, balloon payments, and the agonies of rising rents and no place to keep one's dog or cat. Buy it and protect it. It's your shelter even more than just another investment. Just like Dorothy said ...
  • sglmom 2011/04/01 07:05:18
    Home ownership is a good investment
    sglmom
    +2
    Home Ownership was a GREAT Decision I made as a very young adult .. and now as a Retiree .. I am enjoying the HOME that I own (even though I do have to maintain it myself and it has cost me money too) .. it is MY HOME .. and I am comfortable there.
  • Myrle Hulme 2011/04/01 06:45:27
    Home ownership is a good investment
    Myrle Hulme
    +3
    Normally it is a very good investment
  • nonnonsenseguy 2011/04/01 06:31:59
    Home ownership is a good investment
    nonnonsenseguy
    +2
    Home and land ownership is a good investment if you can afford to sit on it for the next several years to come. From 1974 to about 1986 was a real estate recession. I think what we have now is a real estate depression. It may take 2 years or 20....who knows?
  • Raithere 2011/04/01 05:57:12
    Home ownership is a good investment
    Raithere
    +2
    This guy is an idiot. Where does he think the money for property taxes and maintenance comes from when you rent a home? Does he think it comes out of the owners pocket? Of course not, the owner builds those costs into the rental price. So you wind up paying them anyway. You're not avoiding property taxes by renting, you're paying someone else's.

    That being said, home ownership is not a good investment for everyone. It's a long term commitment, it is illiquid, and people have a tendency to leverage themselves far beyond their means.

    It's no better or worse than any other investment, you have to manage your downside risk and be prepared to ride out a rough market. If you invest in anything only thinking of the upside you will eventually get burned.
  • Icanbean Arschloch 2011/04/01 04:47:27
    Home ownership is a good investment
    Icanbean  Arschloch
    +2
    Don't buy retail.
  • Lynn 2011/04/01 04:21:31
    Home ownership is a good investment
    Lynn
    +2
    But only if you know what you are doing.
  • RockyMtGirl BN 2011/04/01 03:17:40
    Home ownership is a bad investment
    RockyMtGirl BN
    +2
    While the foreclosure market is still active, I would say it's not a good investment; at least for now. When the market has bottomed out, and values start an upward scale, then you can partake and watch that equity rise.
  • S. Gompers 2011/04/01 02:56:01
    Home ownership is a bad investment
    S. Gompers
    +2
    It used to be, but by the time the banks finish destroying the dollar, everyone will probably be living in the streets.
  • Rore73 2011/04/01 02:51:04
    Home ownership is a good investment
    Rore73
    +2
    It depends a little on your income and lifestyle, but it's definately a sound investment provided you, or somebody you trust is there to look out for your investment and maintain the property.
  • mike j 2011/04/01 01:45:32
    Home ownership is a bad investment
    mike j
    +3
    In Texas you never OWN your home, if you do not pay your property taxes , and that is for life, the Government removes you from the house , and sets you on the street . I have a small 1650- sq ft home, and my property taxes for last year was $2400 , That is $200 a month , and there will come a day in some years that my property taxes will be frozen , it will be well beyond $2400+ a year , Now pay that on a fixed income ?
  • Art or Gunny 2011/04/01 01:42:52
    Home ownership is a good investment
    Art or Gunny
    +3
    In 20 years would you prefer a hand full of rent receipts or a deed to a house free and clear.
  • mike j Art or ... 2011/04/01 01:51:28
    mike j
    +2
    Here in Texas , a person never owns their home free and clear , You may have paid off the Bank for the home loan , but you never are exempt from Property Taxes , For instance when i bought my home 20 years ago , my Property taxes were $675 a year or about $50 dollars a month , now my 2010 property taxes were a little over $2400 , about $200 a month , and if I dont pay , the Government will law suit me and then set me out on the street with nothing but a piece of paper that says I have a judgement levid against me . I am not sure that here in texas , that I would take the hand full of rent receipts over a sore ass and a judgement document in hand.
  • Gwen 2011/04/01 01:19:45
    Home ownership is a good investment
    Gwen
    +3
    Home ownership is almost always a good investment...given these provisions:

    A. you buy what you can afford....even on half of your salary.
    B. You don't buy the best home in the neighborhood...allowing yourself some upward appreciation with sweat equity you put into your home.
    C. you stay put in your home and only sell when the market makes it hard to pass up.

    If you buy smart...even if you make very little profit......you still would have lived more comfortably most likely, enjoyed your space more because of being able to make it your own..and avoided throwing away rent for years with nothing to show for it.
  • nverumind 2011/04/01 00:50:47
    Home ownership is a good investment
    nverumind
    +3
    In my short life i have already moved a total of 8 times and finally settled in and bought a house with my fiance. No longer having to worry about eviction, not being able to fix physical problems with the place your living due to not owning the property, The property owner not fixing any problems with the property, not havin to ask to have or own a pet, and spend a different amount on rent depending on how much money you are making.. i love owning our home ~
  • 2012 rick 2011/04/01 00:47:39
  • Robin 2011/04/01 00:40:06
    Home ownership is a good investment
    Robin
    +2
    We are buying our home and it is money well spent.
  • AmVet 2011/03/31 23:37:12
    Home ownership is a bad investment
    AmVet
    +3
    It would be a great investment if it wasn't for the government. The more you improve the condition of the house the more they tax you. It was my understanding that you could only be taxed once for the dollar you earned as income. They tax it when you make it and they tax you when you spend it. Property Tax is one of the most Un-Constitutional Taxes as they tax you every year on the same dollar value your is property worth. They should only tax you on the increased value of the property if at all. Now that the properties have been devalue the tax percentage has gone up to make up the tax lost.
  • Curmudgeon 2011/03/31 23:14:44
    Home ownership is a good investment
    Curmudgeon
    +3
    If your walking in with your eyes open and understand what you are getting into it can be a great investment to make.
  • HipJipC 2011/03/31 23:07:05
    Home ownership is a bad investment
    HipJipC
    +2
    Having owned a home many years ago in Hyannis, MA (Cape Cod) I found that I didn't own it, it owned me. Keeping up with the mortgage is hard enough without big ticket items breaking down (furnace, plumbing and electrical). If I had it to do all over again, I wouldn't unless I could buy it outright and then I would have to only worry about taxes and maintenance.
  • sammanilla 2011/03/31 22:24:57
    Home ownership is a good investment
    sammanilla
    +4
    If you can buy property right now you're foolish not to.

    Those who bought homes at inflated prices and/or on bad terms will disagree and rightly so. But property will always be a good investment.
  • birdman 2011/03/31 22:22:05
    Home ownership is a bad investment
    birdman
    +2
    It can devour your life savings quicker than anything but a gambling binge. It is a place to live, NOT an investment
  • Fearless Valor 2011/03/31 22:12:02
    Home ownership is a bad investment
    Fearless Valor
    +2
    It use to be a great investment but with the way the economy is going and people are losing jobs right and left and this Marxist Pig and his Administration is continuing to throw this country and it's people down the toilet, taking the risk of buying a home today would be like committing suicide very slowly. That's even if the bank would finance you the money. They've become greedy bastards! It all falls onto this president and his so-called dream team and they are the ones killing us all!!!
  • Lily Blooms Eternal 2011/03/31 22:04:00
    Home ownership is a good investment
    Lily Blooms Eternal
    +4
    It depends on your situation of course.

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