Comments on: Home Ownership: A Path to Wealth? http://moneysocket.com/home-ownership-a-path-to-wealth/ Building wealth while enjoying life Thu, 20 Nov 2008 23:27:08 +0000 http://wordpress.org/?v=2.6 By: Make Money Investing In Foreclosed Homes | MoneySocket http://moneysocket.com/home-ownership-a-path-to-wealth/#comment-5180 Make Money Investing In Foreclosed Homes | MoneySocket Mon, 07 Apr 2008 18:01:06 +0000 http://moneysocket.com/?p=228#comment-5180 [...] or not real estate is the path to wealth is a tough question to answer. In her recent article about real estate, Thursday mentioned that the idea of building wealth through one’s primary residence has [...] [...] or not real estate is the path to wealth is a tough question to answer. In her recent article about real estate, Thursday mentioned that the idea of building wealth through one’s primary residence has [...]

]]> By: Danny Tsang http://moneysocket.com/home-ownership-a-path-to-wealth/#comment-5104 Danny Tsang Sun, 06 Apr 2008 02:49:52 +0000 http://moneysocket.com/?p=228#comment-5104 Agreed, a house should not be considered an investment. Real estate CAN be an investment, a great one, if done right. Rehabbing and landlording can bring significant ROI, but those who purchased homes at market value with horrible loans found out that you can't just buy any home and make money. Agreed, a house should not be considered an investment. Real estate CAN be an investment, a great one, if done right. Rehabbing and landlording can bring significant ROI, but those who purchased homes at market value with horrible loans found out that you can’t just buy any home and make money.

]]> By: Kirk http://moneysocket.com/home-ownership-a-path-to-wealth/#comment-5096 Kirk Sun, 06 Apr 2008 00:37:17 +0000 http://moneysocket.com/?p=228#comment-5096 Housing generally only grows at the pace of inflation or wages - traditionally around 4% per year. So the reality is real estate is not a good investment compared to equities. However, the reason real estate did well was due to the leverage. If you buy a 300,000 house with only 20% down (60,000), the 4% increase in a year is a $12,000 gain, which is a 20% return on the original $60,000. But, people are learning that leverage works both ways. Bottom line: don't buy a house thinking it will make you rich. Buy a house to live in it. Then any appreciation is purely bonus. Housing generally only grows at the pace of inflation or wages - traditionally around 4% per year. So the reality is real estate is not a good investment compared to equities. However, the reason real estate did well was due to the leverage. If you buy a 300,000 house with only 20% down (60,000), the 4% increase in a year is a $12,000 gain, which is a 20% return on the original $60,000. But, people are learning that leverage works both ways.

Bottom line: don’t buy a house thinking it will make you rich. Buy a house to live in it. Then any appreciation is purely bonus.

]]> By: Aaron Stroud http://moneysocket.com/home-ownership-a-path-to-wealth/#comment-5073 Aaron Stroud Fri, 04 Apr 2008 23:25:31 +0000 http://moneysocket.com/?p=228#comment-5073 Living in an RV is a great option for some people. In my neighborhood, living in a RV only costs $200-300 more than the property taxes you have to pay to keep <em>your</em> house. If you own a piece of land and are still free to use your RV on undeveloped land, you can save even more money. However, even a huge RV can begin to feel cramped as the kids get older (speaking from experience). Living in an RV is a great option for some people. In my neighborhood, living in a RV only costs $200-300 more than the property taxes you have to pay to keep your house.

If you own a piece of land and are still free to use your RV on undeveloped land, you can save even more money. However, even a huge RV can begin to feel cramped as the kids get older (speaking from experience).

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