Is buying a home an investment or an expense?Buying a home is not an investment , it is an expense. Why is it that way?If you rent an apartment, you will not consider this an investment, will you? The same goes for a house. If you become home owner , then, the money you won't pay for rent will go to pay part of your house and you will have to disburse more money to pay that house.Normally, living in his own house costs more that renting an apartment. Otherwise you would have bought a house right away and not live in an apartment. It is most everybody's dream to own is house. If you rent an apartment, you pay the landlord on the first of the month, you do not have to worry about anything else except for your phone and electricity bill and liability insurance. Cost of living in your own house can easily double that of renting an apartment. Will you get your money back?It not guarantied that you will recoup all of that money after 20 or 30 years. If you are lucky, when you sell the house, you will get back your cost and part of the inflation money that took place over those years. If someone is in the market to have is own home, he will consider giving a contract to have his home built to his standards or buy a new house that is close to what he has dreamed of. He will buy a used house only if it is comparable to the one he wants to buy or build and that that house is less expensive than having a new one. That is why when you sell your home, you will most of the time loose part of the inflation money. Exceptions?There are exceptions, your property is in a prime location , it may then be worth much more than the original cost plus inflation. These situations are exceptional. You want to have your own home, that is very legitimate and it will raise your quality of life. Do not put this with the investments but rather with the expenses on your budget .
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