Current Events > Do millenials view houses as an investment?

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AlternativeFAQS posted...

HydraSlayer82 posted...

Bought my house for 70k. Added a bathroom and updated our main bathroom for about 15k. I built a patio, a shed and installed a fence. My house is worth 120k. Not bad.

Was all that risk worth less than one years salary?

Its where I live so clearly. Real estate right outside the city here in Pittsburgh is cheap as hell. Its stupid to rent in this area if you can afford a house.
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Yes although in my city prices have increased significantly over the past few years.
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KStateKing17 posted...

BLAKUboy posted...

HBKick18 posted...

RTruthLILJimmy posted...

We view them as a fantasy that only rich people have.

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It was a great investment for my dad. He bought a house in New York 25 years ago for $150,000. He gets offers these days of over $500,000.

As for me that shit is too expensive.
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Also, shady banking and mortgage practices do not make the housing market look good either.
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Bought my first house for $5,000 shortly after finishing college. It was ready to move in but everything was just so old and dated, the previous owner was an elderly man and the son didn't want anything to do with the property so he sold it for dirt cheap. Initially it was about 850 sq. feet but I put an addition to bump it to about 1,600 sq ft. While I did that I just went ahead and gutted the whole thing, leveled it, put up new sheetrock and molding, new everything and opened up the floor plan. Did as much of the work as I could with my dad but put about an extra 20k in it after it was all said and done.
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My house is primarily my home, but it is also an investment. I just don't really care if the house gains or loses value while I live there. I have a secure income and about 50% equity so it'd take a huge event to sink me.
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Maybe its not an investment. But its a way to increase your net worth.

I am currently paying $1450 in rent on an apartment. That is money I will NEVER get back.

I could be spending $1500 on a mortgage instead... If I wanted to, I could sell my house, get a lot of money back, and buy a better house later.

Its not entirely an investment, but its easily better than renting (if you arent saving any money by renting, as is in my case).
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angermngment101 posted...

Maybe its not an investment. But its a way to increase your net worth.

I am currently paying $1450 in rent on an apartment. That is money I will NEVER get back.

I could be spending $1500 on a mortgage instead... If I wanted to, I could sell my house, get a lot of money back, and buy a better house later.

Its not entirely an investment, but its easily better than renting (if you arent saving any money by renting, as is in my case).

Buying a house:

- 20% down payment that you can't invest into anything other than the house

- Need to buy appliances like washing and drying, dishwasher

- Maintenance is free for rentals

- Renter's insurance is cheaper

- No closing costs to sell

- Mortgages incur interest payments that you also "throw away and never get back"

Why are you arguing with me? I said your net worth increases. That is not wrong. I did not say it was an investment.
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If you're in the real estate business then a house is definitely an investment.

But if you're an average joe then no.

Houses are liabilities, not assets. They consume money.
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