Quote from: Torque on May 01, 2018, 10:56:13 AM

Quote from: bitserve on May 01, 2018, 08:39:52 AM

Of course there is absolutely no investment that is 100% risk free, but real estate is "safe enough".

Real estate as an investment is ok if:

1. You own it outright, or are actively working to own it outright

2. It pays you back (e.g., renter or leaser income)

3. It has some appreciation

Otherwise, it definitely isn't an "asset" unless it meets those criteria. It is a liability. I cringe when I hear people talk about their home as an "asset", especially when it's not paid off and they have zero intention of ever selling it.

That's simply not true and depends highly on how much equity you have in the house. In fact, not living in the house and having to sell it makes you pay a lot more capital gains taxes compared to selling a house you're actually living in (or have lived within a certain amount of years). Of course it depends on the neighborhood and location, but generally Americans have a lot of their wealth stored in their home and that's not a bad thing. It's generally much safer to live in the house that you are paying off (the benefits are greater) but renting can also be great as long as you're able to find good renters, which can be very difficult. It's still an asset if you have paid off a decent amount and don't live in an undesirable location.

valkener

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