To Invest in a home “or” Not to Invest in a home?
Is buying a home a smart investment? While some say “yes” others might say “no.” So why is there such a nonaligned view? The reason there is such a diverse view is simple; this is a classic case of “there are two sides to every story.”
For those that say a buying a home is not a smart investment because it does not pay you money every month – they’re right. Although, with that, said – that does not mean buying a home is not a smart investment.
Let me explain. Even though buying a home doesn’t pay you monthly that doesn't mean buying a home isn’t a smart investment. Take me for example. I purchased my first home in 1996 for $380,000. I lived in the home for six years before selling it, and in 2002, I sold the home for $780,000. I then purchased my second home for $790,000, and I sold it several years later for $1,100,000. Both times I made a lot of money, and in both cases, no one can argue that buying a home (in my case) wasn’t a great investment. The problem is, not every homeowner does as well as I have done. And even though there are many homeowners that have done as well as I have, there are many homeowners that didn’t fair so well. Hence, two sides to every story.
What I can say for sure is buying a home is a big deal, and shouldn’t be taken lightly. Before buying a home, you need to take all factors into consideration and educate yourself before investing your hard earned money and using it to buy a home.
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