Re:How housing became the world’s biggest asset class
by alexmingoia on Wednesday January 22, 2020 @11:07PM
(#22124778)
The rent is profit only after the loan is paid, minus property taxes, repairs, insurance, and management costs.
If one isn’t living in the house then it’s not a home and they aren’t a homeowner, they’re in the property management business.
My point is that obtaining a mortgage on a house is not necessarily an investment, particularly if one plans on living in it. Yet I often hear from homeowners that their home was a “good investment” despite never having realized a gain on it, and never planning on selling it.
If one isn’t living in the house then it’s not a home and they aren’t a homeowner, they’re in the property management business.
My point is that obtaining a mortgage on a house is not necessarily an investment, particularly if one plans on living in it. Yet I often hear from homeowners that their home was a “good investment” despite never having realized a gain on it, and never planning on selling it.