Why your home is a lousy investment when you think it's great

A home isn’t as great of investment as people think. You should buy a home for other benefits and not because it is the best ROI for your money. I think that’s what most people do. That’s why most people don’t buy until they are married or even later when they have kids.

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Bingo! People seem to forget that small but important point…

Having a place to live is an evidently underrated aspect of home ownership. Worst case scenario - we pay off this whole mortgage thing and have a place to live for the next 30 years until I retire, then sell a who-knows-how-many-million-dollars-it-will-be-by-then house and retire to wherever. Lousy investment indeed.

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Bought my first flip house at 22. Never looked back. Been a fun ride for 42 years. Wish I kept them all. Never felt the same about stocks. What was the hot stock in 1976? Was it Xerox? Is it even still around today?
In fact stocks sucked in the 70s and real estate skyrocketed.

in the 1970s
The process of change, as far as investing was concerned, accelerated in the 1970s, although the U.S.stock market meandered through this decade of stagflation. The DJIA, which was just above 800 at the start of the 1970s, had only advanced to about 839 by the end of the decade, an overall gain of 5% over this 10-year period. (For details see, Stagflation, 1970s Style

All the houses I bought and sold still exist and all have appreciated a whole bunch.

These were the hot stocks in 1970. Most didn’t gain any value by 1980. In fact with 10% annualized inflation they lost a lot of real value. How many of these would you buy today?

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Based on my experience:

Best investment: worked for a startup that goes IPO (stock grew exponentially)
2nd best: worked for a good company (company stock options grew 1000+%)
3rd best: investing in tech stocks (grew ~300%)
4th best: investing in Bay Area rental properties (grew ~150%)
Lastly: primary home (grew ~150% but not counting expenses through the years)

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Stocks come and go . Real estate lasts forever.

Everyone who bought since 2009 looks like genius. Wait for the next downturn when the tide goes out to find out who is swiming naked

I’m all naked and over-exposed even before the tide goes out… :rofl:

All animals walk around naked. Very first humans walk around naked. Who is the joker to indoctrinate us to wear clothings?

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Warren Buffett.
https://www.google.com/amp/amp.timeinc.net/time/money/2792510/swimming-naked-when-the-tide-goes-out

Totally flawed analysis. So dumb that I can’t bother to respond to this billionaire with a lousy investment return and an untold self interest.

Please sell me your 1995 median price house and I’ll pay all the expenses plus the original cost.

There’s an obvious big flaw in the analysis. Can you identify the biggest flaw? I’ll give 10 likes to the first poster who can identify the biggest flaw.

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Biggest flaw: not possible to give more than 1 like per person per post. :rofl:

10 likes to the poster, not the post. Use your critical thinking skills.

Wall Street is shameless. I can’t believe a supposed billionaire is using such a flawed analysis. He should work hard to improve his lousy stock investment return instead of asking more suckers to give him money to collect management fees

Didn’t include the cost of rent. 90% of all millionaires made their money in RE not stocks… .
You make your money in your job or business. Then buy a house, then invest. I was lucky my business my house and RE investments were all in one package. Stock investing is for play money. Something rich people do.
Or IRA money as long as the company matches your investment. Money never to be touched until retirement. Otherwise it is gambling.

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Um… not sure if I want to post 10 times to accommodate your likes… :frowning:

Elt1 nailed it. I just gave 15 likes to his posts in the thread!

Fisher is stupid (or deceptive) to count all the interest and maintenance expenses but not counting the equivalent rent. WS is so shameless that even a billionaire is using its false math to rip people off.

I’m all for good education. But if poeple are deceived by the brainwashing “education” such as this article, it would be worse off to be over educated than under educated.

So flawed… I will also give my accolades to the first person who can point out the biggest flaw with the analysis above… :laughing:

Ken Fisher is a friend. I have worked for him and his wife. Because of SEC rules his personal stock investing is limited.
He has made $100s of millions investing in RE. His Home office home complex is worth $50m. He owns thousands of acres in San Mateo County. His office building in Vancouver Washington. His 100,000sf office building in San Mateo are each worth $50m
He is a RE guru. He is just looking for more suckers to invest in Fisher Investments.

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I know… I throw up every time I receive his “please invest into me if you have a $500k portfolio” mail… they come in big envelopes too. Save some tree please Ken!!! :rofl:

Ken is a marketing genius. He is so good he has convinced Hanera that RE is a lousy investment. He probably owns half of Austin, too… lol

Marketing often times involves deception and misleading. But the problem with Fisher’s marketing is that it is disguised as an “educational” piece. I feel that media has greatly ruined the reputation of “education”.