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#459786 - 11/15/17 04:41 PM Re: Is buying a home still the best first investment? [Re: Mayra Kelley]
Long Walk Offline
Member

Registered: 06/27/08
Posts: 381
Loc: New Hampshire
To Vermont's point above, the OP was asking about the best first investment.

Some would argue that your primary residence would not be classed as an investment because of your motivation to buy it. Naturally, others would vocally disagree and they would debate endlessly.

To answer the OP's question, I think a savings account is the very best first investment. The discipline and habit of saving are indispensable and best learned when young.

But, to houses, everybody seems to be in agreement that buying a house with an eye toward the likelihood of future appreciation is the best approach. That sounds right to me, as well.

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#460217 - 01/04/18 04:09 AM Re: Is buying a home still the best first investment? [Re: sakshidhawan]
Nasser Offline
Junior Member

Registered: 01/04/18
Posts: 5
Loc: San Francisco
Look,

Whether you're buying a home as a first investment or as the last investment, the thing that will truly determine whether it is worth your money or not is an investment analysis.

The beauty of real estate is that it is much easier to predict and to assess than stocks. If you're considering buying a home, you can easily conduct an investment analysis to determine exactly what that home is worth, and how much profit it can generate when managed correctly!



Edited by doug (01/04/18 06:14 AM)
Edit Reason: url removed

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#460220 - 01/04/18 08:19 AM Re: Is buying a home still the best first investment? [Re: Nasser]
Long Walk Offline
Member

Registered: 06/27/08
Posts: 381
Loc: New Hampshire
Originally Posted By: Nasser
The beauty of real estate is that it is much easier to predict and to assess than stocks. If you're considering buying a home, you can easily conduct an investment analysis to determine exactly what that home is worth, and how much profit it can generate when managed correctly!

I am guessing that you are referring here to the income value of the property. And that might be true if only looking at cash profits from rental operations.

The accuracy of the prediction would only be as good as the underlying predictions on vacancy, rental rates, capital improvements, and operating expenses. It doesn't apply to many properties, but the threat of taking by eminent domain must also be considered.

I would be very careful to distinguish the value of future cash profits from future value of the real estate. Like stocks, it is next to impossible to predict the future value of real estate with any degree of certainty.

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#460279 - 01/08/18 07:15 PM Re: Is buying a home still the best first investment? [Re: sakshidhawan]
VABroker Offline
Veteran Member

Registered: 11/02/10
Posts: 1094
Loc: Virginia
I think it all depends on individual circumstances.

As Longwalk says, a savings account is always the first step. I am shocked that the average, middle-class American only has $1,000 (or less) in savings. Can this actually be? My nephew who is a Junior in college has mentioned he wants to talk about real estate some time and his uncle and I have told him the first thing he is to do when he gets a job out of college is start a savings and a retirement account. Compounding over his lifetime would do more wonders than trying to catch up in your 50s. As Suze Ormann always said, "Pay yourself first!"

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#460321 - 01/11/18 02:32 AM Re: Is buying a home still the best first investment? [Re: sakshidhawan]
rentdeal Offline
Junior Member

Registered: 01/11/18
Posts: 2
Loc: Saskatchewan, Canada
Well, I believe that it depends on your level of experience in real estate investment. Buying a home is indeed the best first investment as it entails less risks and it naturally has additional benefits from any other property that you may buy as you simply can use it for yourself if no buyers ever wanted your property or if the economy of the country suddenly collapsed. Buying a home will always be a valuable asset for you to use. Yet, I believe that the house become more valuable if the location of the house and its surrounding environment are constantly increasing in value with special facilities and services to make it more attractive.

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#462174 - 08/21/18 06:33 AM Re: Is buying a home still the best first investment? [Re: sakshidhawan]
Ananthi Mathur Offline
Member

Registered: 07/23/18
Posts: 17
Loc: United State
Buying a home is always best investment someone can make. As every year property rates are increasing day by day. So if we buy a property now and it will surely make a good impact on our future.

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#462955 - 11/25/18 07:15 PM Re: Is buying a home still the best first investment? [Re: sakshidhawan]
TheGodson Offline
Junior Member

Registered: 11/24/18
Posts: 4
Loc: Michigan, USA
Houses match inflation, so no it isn't the best investment unless you are renting it out and getting a bunch of money. If you buy a house to live in for yourself you will actually lose buying power due to expenses. The S&P500 is a better investment than a house if you are only living in it and not renting it out.

Buying a house to live in will beat keeping money in a savings account though.

This is all assuming you have no mortgage payment. With a mortgage payment you lose even more money.

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#463101 - 12/14/18 05:32 AM Re: Is buying a home still the best first investment? [Re: sakshidhawan]
Granta Omega Offline
Member

Registered: 05/01/15
Posts: 182
Loc: Dallas, TX
Buy a home that you plan to have in better condition than when you bought it is often a good investment depending on how much you spent on it, and the market trends.

If the home is a standalone property, it is much better. If it is a condo, forget about it. Buying a condo is pretty much buying a time share. You give them permission to charge whatever they want for monthly fees until you no longer own it.

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#463102 - 12/14/18 07:50 AM Re: Is buying a home still the best first investment? [Re: Granta Omega]
Bigtoe Offline
Major Contributor

Registered: 10/14/07
Posts: 2389
Loc: Outer Banks
Originally Posted By: Granta Omega
You give them permission to charge whatever they want for monthly fees until you no longer own it.


Them is you the condo owner. Every condo owner gets an equal vote on what is charged and on who is in charge.
_________________________
Your Outer Banks real estate agent. Helping people buy and sell OBX real estate since 1989.

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#463120 - 12/18/18 10:34 AM Re: Is buying a home still the best first investment? [Re: sakshidhawan]
Vincent2011 Offline
Member

Registered: 08/29/18
Posts: 14
Loc: New England
If you were to buy today at this all time high market then you will be a bag holder for quite sometime IMO. Real estate just like any other investment, its all about TIMING whether you buy/sell or live in it. Properties dont just appreciate in value magically just because you bought and someone else told you real state always goes up. Its always about market rate, supply and demand or whatever someone is willing to pay for it.

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#463127 - 12/19/18 10:17 AM Re: Is buying a home still the best first investment? [Re: Vincent2011]
Bigtoe Offline
Major Contributor

Registered: 10/14/07
Posts: 2389
Loc: Outer Banks
Originally Posted By: Vincent2011
If you were to buy today at this all time high market then you will be a bag holder for quite sometime IMO. Real estate just like any other investment, its all about TIMING whether you buy/sell or live in it. Properties dont just appreciate in value magically just because you bought and someone else told you real state always goes up. Its always about market rate, supply and demand or whatever someone is willing to pay for it.


The same can be said about buying a car, golf clubs, tv, clothes, or anyting else we all use on a daily basis. Buying a home to live in is also an investment in quality of life. Some people are not comfortable living at the mercy of a landlord. Some people want to own the dirt under their residence. There are a plethora of reasons to want to invest in a home besides making money.
_________________________
Your Outer Banks real estate agent. Helping people buy and sell OBX real estate since 1989.

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#463202 - 01/02/19 03:24 PM Re: Is buying a home still the best first investment? [Re: Bigtoe]
Vincent2011 Offline
Member

Registered: 08/29/18
Posts: 14
Loc: New England
[quote=Bigtoe]
The same can be said about buying a car, golf clubs, tv, clothes, or anyting else we all use on a daily basis. Buying a home to live in is also an investment in quality of life. Some people are not comfortable living at the mercy of a landlord. Some people want to own the dirt under their residence. There are a plethora of reasons to want to invest in a home besides making money. [/quote]

Quality of life is when a property is paid in full and owned outright.

Anyone can take on debt to buy anything they want so if you are not at the mercy of landlord you are at the lender's mercy. Landlord can be more reasonable while lender can ruthless.

Unless an asset appreciates in value overtime I don't really see the point of holding something just for the sake of it. We are at an all time hight RE market now and when it bursts not IF it does we will see values slashed by a good percentage. My 2c



Edited by Vincent2011 (01/02/19 03:25 PM)

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#463208 - 01/03/19 07:11 AM Re: Is buying a home still the best first investment? [Re: sakshidhawan]
Bigtoe Offline
Major Contributor

Registered: 10/14/07
Posts: 2389
Loc: Outer Banks
Nobody is at the lenders mercy. When you get a home mortgage you know exactly whet your monthly payment will be for the next 30 years. You know exactly where you will live, where your kids will go to school and where your menories will be made.

With a landlord, your monthly payment is guaranteed for 12 months at a time, you might have to move next year, your kids might have to go to a different school and you will never experience stability.

The picture is much larger than you are seeing.
_________________________
Your Outer Banks real estate agent. Helping people buy and sell OBX real estate since 1989.

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#465795 - 09/03/19 10:26 AM Re: Is buying a home still the best first investment? [Re: sakshidhawan]
Chris Goerge Offline
Member

Registered: 09/03/19
Posts: 10
Loc: Canada
Yes! Of course, buying a house is the most safe and secure investment. I'm always looking to invest in the property rather other things.

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