It all depends on how long you intend to own the home.
Not sure the concept of a “starter house” works well in this environment
Of course. Most people’s homes will provide a return on their investment. But it definitely isn’t “always”.
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The notion that it’s always profitable even considering interest, etc. is the frame of thinking that helped lead to the housing bubble in '08.
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Are you trolling? Surely you know this is false.
Eh, no. It depends on how long you actually own the home.
Unexpected stuff happens in life. You might have an unplanned job change, pregnancy, divorce… you just don’t know.
I intended my home before the current one to be my forever home. Then my husband’s job resulted in a >1000 mile move. Sold it for $24,000 less than I’d paid over 6 years earlier, plus of course I had two sets of transaction costs on that place, not to mention the expense of paying the mortgage, HOA fee, property tax, insurance, and utilities for 2.5 months while it sat vacant and on the market / waiting for closing.
I ended up selling it about a month before a $35,000 special assessment. I knew there was going to be a special assessment coming, but I didn’t know how much, but based on what I knew of the work that needed to be done I figured it was going to be a whopper. I might have been able to hold out for $10,000 more on the sale price, but with the special assessment coming, taking the bird in the hand seemed like the right call.
For those of you keeping score at home, I got divorced in 2008. Bought the new place in February, right before the market crashed while my STBX and I still owned the old one, which we sold in May, after the market crashed. Thus I was treated to double exposure when the housing bubble burst. 0 out of 5 stars… do not recommend.
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Not always an investment - trust me on that…
Maybe I won’t like you as much as I first thought…hmmm…
I won’t treat a home as an investment ever again because of a large loss due to timing (2008) and bad luck (divorce). It is a roof over your head and security imo. I think I remember @ShebaPo (or @MattTheSkywalker) from the AO stated this once. He was a pretty smart guy.
Here’s an example of why that “always” comment bugs me. I just bought a house in November 2021. Probably the absolute worst time to do so. If my daughter got sick and needed me to care for her I would sell my home, MOST LIKLEY AT A LOSS, and I’d go buy a home near her (VA to WI).
Now the ex and I bought and sold 3 homes before the last home loss, and I think we pretty much broke even, but still…
Thanks @twig93 for helping me complete my thoughts on this as well (ninja’d).
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Another one of the spambot posts hitting here. Makes some generic statement and then later edits the post with a link in it. This is the third one I’ve seen and reported
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We bought a house in 2006. Then on Jan. 8, 2009* my company had huge layoffs. I survived them, but had to move to another city to keep the job. Sold the house at a loss (but my company reimbursed a part of the loss).
'* I remember the date very clearly because I wasn’t at work that day - I was at the hospital as my wife gave birth to our 2nd child
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why are there two threads on home ownership? Got me confused.
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Yeah, I still remember the date my employer laid off a sizable chunk of its workforce. “A day that will live in infamy”
And I didn’t have anything like the birth of a child to assist in my recollection of the date, either, so I imagine that would even more sear the date into your memory.
Iirc, Fox News did a fantastic investigation on how that guy was weirdly obsessed with owning a big house in a way that fits this thread. That was before they loss Chris Wallace of course.
He did own a very large house, but I don’t think he considered it a financial investment, it was more of an investment to attract staff from Applebees (well, that and $100 tips)
I enjoy big houses.
I want to walk around the house and get lost. That brings me happiness. So to buy a big house means I’m buying happiness, and that’s always worth it to me.
Would you have the same feels if ownership wasn’t an option?
Probably not. Owning a house feels very different from renting one. For one, doing interior design on a rental does not give me pleasure, because it doesn’t feel permanent, and doesn’t feel like it’s mine.
Do you often find yourself standing outside your New York mansion, staring absently at a green light in the far distance?
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I don’t live in new york. And I no longer own a big house.
I live in a luxury high rise, but it’s only a one bedroom, as I live alone.
No house is too big for me, and I think I’d never be satisfied with the size of my house no matter how much wealth I have. And it’s not just the size that matters, but also comfort.
I’d love to own a castle, but it’d better be pretty new, with no insects and rodents, has AC, and new pipes, oh and also close enough to the city LOL.
Wouldn’t you be more likely to get lost if it was a house you hadn’t bought?
Perhaps the answer is 12 mansions that he cycles through each month
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