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Politics : Formerly About Advanced Micro Devices
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To: Road Walker who wrote (451977)1/28/2009 6:58:51 PM
From: tejek  Read Replies (2) of 1575874
 
Homes in this country have been the bedrock of the middle class only if you stay in that home for 10 years or more.

I've never been sure a house is a 'great' long term investment. When you get done paying the interest, property taxes and the huge maintenance, you are probably paying 3X what the house 'cost'. One benefit is 'forced savings'; a lot of people wouldn't have the discipline to save if they were renting. Another is, of course, mortgage leverage.

Still if I counted every penny I've put into this house for the last 16 years, assuming I sold it today, I'm not sure it would be any better than renting.

Knowing what I know about the Tampa market, I probably would never have bought a house there. My cousin lived in his house for 5 years in a decent neighborhood and had to sell it for less than what he paid for it. That sucks. My experience is the West coast where there is a lot of appreciation. However, I know that Tampa's story is more the norm than say LA's.

Its only in places like CA or NYC or FLA where homes appreciate more quickly

I lived here (FL) for 10 years with less than an average of 2% appreciation per year. Then it went up 250% in 3 years. Now down 40ish % in 2 years. I'm probably at a little over a double in 16 years. Not so great... after expenses but plus leverage.

Yes....like you said, forced savings and a nice pot for when you retire.
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