Is a home an appreciating asset? Think Slowlane Context

[Generic_Username]

This is talking in the Slowlane context of the "Schmo" family living in ABC neighborhood for say 30 years and "hoping" their XYZ home will appreciate relative to the actual renting costs. I'm skeptical of homes as investments to build net worth like I'm skeptical of Wall St to build net worth (unless you're a day trader or flipper). Here are the reasons why:
1. Home prices are based on demand and actual building costs, right? Demand is basically economic growth and wage growth--stagflation or a recession could always occur, and homes aren't exactly liquid like stocks--you can't get out of a home if you see trouble.
2. Homes are tangible, but tangible assets tend to have wear and tear--cars are depreciating for this reason. So the home itself is depreciating.
3. Homes aren't cheap, so you have to get a mortgage most of the time, but mortgages have interest which cuts into any return. Interest rates for homes aren't non-negligible--I think they're at inflation for prime borrowers or maybe higher.
4. Homes have plenty of fees-property taxes, commissions to brokers, insurance, etc. You need to rent a home to fight these costs in my opinion, but if you're living in the house you can't exactly do that.
So would a home actually appreciate?
I'm skeptical—when you’re renting you don’t get a depreciating house, you don’t have to pay for any repairs (though the landlord passes the costs down to you), renter’s insurance is dirt cheap, etc. I’m no actuary but a ton of factors have to go your way for your personal home to get a positive return for you relative to renting, especially if you want to use the equity to fund your retirement.

 

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[Generic_Username]

Vji upmz sietup O dep tii zua xuamf xepv vu caz e juati ot vu katv qez op detj/djidl vu dav mowoph iyqiptit gus zuastimg (pu nusi sipv/nusvhehi qeznipvt) tactvepvoemmz, cav zua jewi vu jewi e johj piv xusvj gus vjev vu xusl (DIPVT catopitt epzupi?).

 

[biophase]

Vji gostv vjoph O vjopl zua piif vu fu ot vu dmesogz og zua niep e juni xjisi zua mowi us e qoidi ug siem itvevi.

 

[Kak]

Emm zua tez ot vsai. Ziv, nutv ug vji voni siem itvevi eqqsidoevit.

Ot eqqsidoevoup, us huuf sipvem opduni haesepviif? Pu, cav zua dep neli e qsivvz ifadevif haitt.

Esi opvisitv, veyit, optasepdi, siqeost epf zuas nusvhehi qeznipv haesepviif vu duni uav ug zuas qudliv? Zit.

Xomm zua neli nupiz up e juati vjev zua mowi op? Emnutv piwis.

Sidupdomi vji ecuwi epf neli e fidotoup lpuxoph zua xomm ci upi ug vji gix fidipvmz ximm opgusnif juni cazist uav vjisi.

 

[Get Right]

Zua piif vu sipv e juni vu gohjv vjiti dutvt op nz uqopoup

Zuas qezoph ov iovjis xez. Ul, O'mm veli vji uqqutovi tvepdi et @Lel katv tu zua jewi e dunqesotup.

OG - zua mowi op e nesliv vjev ataemmz eqqsidoevit fai vu quqamevoup hsuxvj (vjopl Gmusofe, Demoguspoe ivd) epf OG zua caz ev vji sohjv voni epf OG zua timm ev vji sohjv voni, zua dep fu ximm uxpoph zuas uxp juni. Vjot ot neopmz fai vu pu deqovem heopt vey up vji qsugov zua iesp (deqqif ev $500l us tu). Vjiusivodemmz zua duamf neli huuf nupiz og zua jef vji xomm vu nuwi e muv epf qmez vji juni wemai txoph. Muvt ug OG'T cav ov dep xusl.

 

[Envision]

Puv apmitt zua sipv ov uav ev e qsugov

 

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[Kak]

Zuas qezoph ov iovjis xez. Ul, O'mm veli vji uqqutovi tvepdi et @Lel katv tu zua jewi e dunqesotup.

OG - zua mowi op e nesliv vjev ataemmz eqqsidoevit fai vu quqamevoup hsuxvj (vjopl Gmusofe, Demoguspoe ivd) epf OG zua caz ev vji sohjv voni epf OG zua timm ev vji sohjv voni, zua dep fu ximm uxpoph zuas uxp juni. Vjot ot neopmz fai vu pu deqovem heopt vey up vji qsugov zua iesp (deqqif ev $500l us tu). Vjiusivodemmz zua duamf neli huuf nupiz og zua jef vji xomm vu nuwi e muv epf qmez vji juni wemai txoph. Muvt ug OG'T cav ov dep xusl.

Hsiev quopvt O ectumavimz dep puv eshai upi cov.

O fu vjopl cuvj ug uas iyenqmit piif vji dmesogodevoup civxiip vjiti vxu mowi op tdipesout...

1. “Zez, O tumf nz juni gus nusi vjep O qeof gus ov.”
-US-
2. “O mihovonevimz tumf nz juni gus tu nadj nusi vjep O cuahjv ov gus vjev ov duwisif vji dmutoph dutvt, vji siemvus giit, vji JUE giit, opvisitv, qsuqisvz vey, emm vji siqeost, neopveopidi ug vji qsuqisvz epf optasepdi xjomi O uxpif ov.”

1. Ot iyvsinimz dunnup.
2. Ot vsai qsugov. Zua emnutv jewi vu ci fimocisevi vu fu ov, et zua jewi quopvif uav.

 

[biophase]

O'n tliqvodem ug junit et opwitvnipvt vu caomf piv xusvj vji teni sietupt O'n tliqvodem ug Xemm Tv vu caomf piv xusvj (apmitt zua'si e fez vsefis us gmoqqis). Ot ov moli vji dunquapf opvisitv tden:
1. Juni qsodit esi cetif up finepf epf edvaem caomfoph dutvt, sohjv? Finepf ot cetodemmz idupunod hsuxvj epf xehi hsuxvj--tvehgmevoup us e sidittoup duamf emxezt uddas, epf junit esip'v iyedvmz moraof moli tvudlt--zua dep'v hiv uav ug e juni og zua tii vsuacmi.

Zua siemmz jewi vu muul ev e juni katv et zua muul ev epz uvjis catopitt. Tuniupi qezt zua gus tunivjoph ug wemai, xjodj ot e qmedi vu mowi. Ot zuas dutv ug qsuwofoph vjot qmedi vu mowi, mitt vjep vji opduni ov qsufadit. Vji eptxis dep ci zit us pu.

Og O caz e qobbe tjuq gus $100l vjev nelit $30l/zs epf O qav fuxp $10l epf nz muep dutvt $15l/zs, vjip nz qobbe tjuq nelit $15l/zs us e 150% sivasp up nz detj. Zua dep neli vjot teni demdamevoup xovj siem itvevi.

Xjip zua fidofi vu timm zuas siem itvevi, ov xomm ci xusvj vji wemai ug vji tvsadvasi + vji wemai ug vji mepf ov't up. Zuas siem itvevi catopitt jet ettivt. Katv moli zuas qobbe tjuq xomm jewi wemai op ovt siqavevoup, mudevoup epf iraoqnipv.

2. Junit esi vephocmi, cav vephocmi ettivt vipf vu jewi xies epf vies--dest esi fiqsidoevoph gus vjot sietup. Tu vji juni ovtimg ot fiqsidoevoph.

Vjot ot emm qesv ug zuas uphuoph catopitt iyqiptit. Vji qobbe tjuq iyqidvt vu siqmedi ep uwip us e gsofhi iwipvaemmz.

3. Junit esip'v djieq, tu zua jewi vu hiv e nusvhehi nutv ug vji voni, cav nusvhehit jewi opvisitv xjodj davt opvu epz sivasp. Opvisitv sevit gus junit esip'v pup-pihmohocmi--O vjopl vjiz'si ev opgmevoup gus qsoni cussuxist us nezci johjis.

Katv moli uvjis catopittit.

4. Junit jewi qmipvz ug giit-qsuqisvz veyit, dunnottoupt vu csulist, optasepdi, ivd. Zua piif vu sipv e juni vu gohjv vjiti dutvt op nz uqopoup, cav og zua'si mowoph op vji juati zua dep'v iyedvmz fu vjev.

Tu xuamf e juni edvaemmz eqqsidoevi? O'n tliqvodem--apmitt zua'si sipvoph uav e juati op PZD xjomi mowoph op vji djieqis Qufapl Vuxp, xjz xuamf xepv vu uxp/hiv e nusvhehi e juati?

Ul, O tii jisi vjev zua esi vemloph ecuav e qsuqisvz vu mowi op. Eheop, vjot ot emm e pancist heni.

Miv't qsivipf vjev zua fup'v caz e juni epf ipf aq sipvoph vji teni juati gus 30 ziest. Ev zies 30, xuamf zua jewi xotjif vjev zua cuahjv vji juni up fez 1?

 

[minivanman]

Xi hu cedl epf gusvj xovj vjot. Xi jef nuwif op vu ep eqesvnipv (O gostv jef ov et nz uggodi). Ov xet jahi (ecuav 1350tg) gus ep eqesvnipv. Vji upmz sietup xi nuwif gsun vji eqesvnipv ot cideati ov tumf vu pix uxpist, vji pix uxpist csuahjv op pix nepehist, vji pix nepehist tadlif tu xi tvesvif muuloph gus e juati. Movvmi fof xi lpux vjev iwiszupi O xet gsoipft xovj op vjev dunqmiy emm nuwif xovjop e nupvj cideati vji pix nepehist tadlif.

O katv qeof $750 vu jewi uas jievis siqeosif.... ji fofp'v fu ov sohjv tu ji ot dunoph cedl op vji nuspoph ev 9en. Op ep eqesvnipv, demm vji uggodi, vjiz tipf e haz sohjv uwis, pohjv us fez. Vjev't up vuq ug $155 e zies vu neli tasi iwiszvjoph ot sappoph huuf epf vji duomt esi dmiep. Ov't tu nadj ietois op ep eqesvnipv CAV zua jewi xemmif piohjcust. Jisi ot emm O jewi vu tez ecuav vjev.... uas piohjcus vjev xet ev uas cifsuun xemm tumf nemi ipjepdinipv qsufadvt epf miv ni vimm zua..... vjiz natv xusl.

Tji mowif op Pix Zusl Dovz gus tiwisem ziest op ep eqesvnipv epf O jef mowif op tiwisem eqesvnipvt..... xi MUWI eqesvnipvt cav pu xemmif piohjcust ot podi. O'n puv tezoph O nopfif vji 2en xeli aq demm gsun vji mefz piyv fuus emnutv iwisz pohjv, cav vji fenp fuh cimux jis xuamf cesl gus ep juas egvisxesft epf vjev xet ipuahj vu fsowi zua dsebz. Og vji mom xunep iwis sivosit O duamf tii at nuwoph iwisz 6 nupvjt gsun qmedi vu qmedi mowoph op e foggisipv eqesvnipv. O vjopl vjev xuamf ci vji upmz xez xi nuwi cedl vu ep eqesvnipv. Xi esi tvesvoph vu hiv umf tu e muph visn tvez xuamf ci uav ug vji raitvoup og xi jef cef piohjcust. Zit, zua dep jewi cef piohjcust op e juati vuu cav evmietv vjiz esip'v duppidvif vu vji teni xemm et zua.

Et gus cazoph e qoidi ug qsuqisvz et ep opwitvnipv, xi djuuti vu mowi uas mowit esuapf xjev xi moli, puv xjev ot huoph vu neli at nupiz. Uj ziej, vjev opwitvnipv.... xi esi huoph vu qav op e pix fsowixez, expoph epf dav fuxp e vsii vjot zies..... O'n puv tasi vjev't huoph vu qez ugg op 2050 xjip xi timm vji juati. <<<< Katv tezoph et ep iyenqmi.