{"id":2881,"date":"2021-11-18T10:26:00","date_gmt":"2021-11-18T05:26:00","guid":{"rendered":"https:\/\/fileproinfo.com\/blog\/?p=2881"},"modified":"2021-11-18T23:38:16","modified_gmt":"2021-11-18T18:38:16","slug":"why-owning-a-home-is-actually-a-bad-investment","status":"publish","type":"post","link":"https:\/\/fileproinfo.com\/blog\/why-owning-a-home-is-actually-a-bad-investment\/2021\/","title":{"rendered":"Why Owning a Home is Actually a Bad Investment"},"content":{"rendered":"\n

Buying a house is a quintessential step in the American Dream. But what if we\u2019ve all been led astray over the years? What if it\u2019s not actually the best financial decision you can make? Believe it or not, there\u2019s a pretty strong argument to be made against<\/em> homeownership.<\/p>\n\n\n\n

Homeownership Might be Costing You<\/h2>\n\n\n\n

The American life is pretty well planned out for middle- and upper-class Americans. You graduate from high school, go to college, get a good job with plenty of career upside, get married, and buy a house. And until recently, that last step has always been assumed\/taken for granted. But a more analytical look at the topic shows that homeownership isn\u2019t actually the best option for someone who wants to maximize their finances over 10, 20, or even 50-plus years.<\/p>\n\n\n\n

To sum it up in one sentence: homeownership is expensive. And while previous generations have sort of swept this issue under the rug, millennials have been forced to confront it head-on. A whopping 63 percent<\/a> of them have regrets over buying a house, with hidden costs being the number one driving force behind their regret.<\/p>\n\n\n\n

In a marketplace like the one we\u2019re in right now, it\u2019s easy to feel like owning a home gives you exposure to the massive upside. And in one sense it does. Nationally, homes have appreciated at 14.5 percent<\/a> over the past year. And in some markets, that number is closer to 25 to 30 percent.\u00a0<\/p>\n\n\n\n

So if you look at home ownership in a short-term vacuum, it looks like an obvious way to improve your finances. But when you zoom out and look at homeownership over the course of many decades, it\u2019s less clear.<\/p>\n\n\n\n

Historically, homes have appreciated at an average of just 3.5 percent to 3.8 percent. That\u2019s not terrible until you consider the fact that the average annual inflation rate (historically) hovers right around 3 percent. <\/p>\n\n\n\n

So in most years, a home\u2019s value is merely keeping up with inflation. That makes it a safe store of money (at best). But we haven\u2019t even talked about the long list of expenses that are attached to owning a home.<\/p>\n\n\n\n

The true costs of owning a home<\/a> are often overlooked. They include:<\/p>\n\n\n\n