Quote from: headingnorth on August 14, 2024, 02:17:08 AM

Most people buy into the myth that buying a home is the best investment you can ever make...but more often than not that idea is just a myth.

Take the US as an example. The average house in N. America appreciates 5 to 6 per cent per year, which sounds great at first glance. In 10 years the value of your house will almost double.

But most people don't take into account the interest rate where the average homeowner is paying approx. 6% annual interest on a typical 30-year fixed mortgage.
So the interest alone is wiping out the gains on your annual 6% appreciation. On top of that you are paying 1% property tax year every year, maintenance and repair costs, etc.

Making matters worse is that for the first ten years or so most or all of your payments are applied to the interest, so you wont have any actual ownership or equity of the home,
or very little...for the first ten years. And consider that much of the appreciation of your house is simply due to inflation. So if inflation is 5% per year then that alone is undermining your actual appreciation.

I'm not saying that owning a house is a bad thing, there are certainly benefits to home ownership. It provides you with a place to live, you can borrow against it,
you can pass it down to your kids, etc. If you just want to have a place to live and call your own then owning a house may be a great idea for you, but don't think of it as some kind of
incredible financial investment because it is not as great as you may think.

This is just your own thoughts though, because it's already proven that nothing beats landed property, especially a house, yea it's very true that owning a house might not be that appealing to you base on your location, but in my own location, especially in Africa, if you are a house owner in the a very good populated (city)environment, bro, you have actually struck gold.

I know that their are people that will definitely argue that owning a Bitcoin is better based on it potential in the future and it's ability to appreciate in value overtime, but owning a house can really make you a fortune in terms of rents if it's been own in a very good environment in a populated city where good accomodations are scarce, so it all boils down to the angle you are seeing it, but as for me, I will choose owning a house over Bitcoin everyday, because houses are asset that also appreciate in value overtime.