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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (67447)	11/28/2006 7:34:46 PM
From: saveslivesbyday	Respond to of 306849

>>After you factor in the interest paid on the mortgage, the insurance, the taxes, the utilities, the maintenance, the risk that the area could go downhill, your closing costs, and the commission to the realtor on the sale, you are lucky to keep up with inflation. A home is a Personal Possession not an investment.<< On these points, I agree with you folks. Robert Kiyosaki (Rich Dad, Poor Dad) is right - A home that one lives in is not an asset or an investment. Instead of cash flow or income, there are only expenses, and likely modest appreciation over time. Even the equity in one's home is not an asset. The mortgage is an asset to whomever is collecting the interest. Rental property is an asset if the rent covers the expenses. Property that is quickly flipped has the potential to be called an investment - if one is lucky enough to be in the right place at the right time. The right place is not Florida or California, and the right time is not now.