It’s often said that a house is our biggest investment, yet the primary function of any house is to simply provide us with a place to live. Yes, handsome gains can be had for those with good timing. However, as investments go, houses rarely match the long-term returns of stocks. And most people forget that property taxes, maintenance costs, insurance, and even real estate agent fees eat into those returns.
The bottom line: It’s a mistake to rely on your home as a sure-fire piggy bank of future wealth. It’s wiser to diligently save and soundly invest your income over time.
Photo Credit: Charles D P Miller