Rising mortgage rates and high home prices have thrown the traditional “buy a house, build wealth” equation into disarray. Whether it’s a sound investment now depends on a complex interplay of your individual circumstances and financial objectives.
A user asked the forum, “Is a house even a good investment right now?”. Here are some responses he got!
A HOME TO LIVE IN
![shocked in red](https://mrsdaakustudio.com/wp-content/uploads/2023/07/shocked-in-red.jpeg)
“If a home to live in, don’t consider that an investment. Buy it if the numbers make sense for your situation. Don’t over-extend yourself and stress test your purchase (e.g., is it manageable if you lose your job, have a sufficient emergency fund, etc.)
From an investment property standpoint, now is not a good time.”
PRIMARY RESIDENCE IS NOT AN INVESTMENT
![shock and cringe funny face shot of a African American male showcasing facial expression](https://mrsdaakustudio.com/wp-content/uploads/2023/06/cringe-man.jpeg)
“Primary residence is not an investment. While it can contribute to building wealth, the goal of buying a house is to live in it.”
HOME-OWNERSHIP NOT ALWAYS THE BEST INVESTMENT
![Shocked beautiful woman in eyeglasses grabbing her head isolated over beige wall](https://mrsdaakustudio.com/wp-content/uploads/2023/07/wow-shocked-wtf.jpeg)
“If you own the property you live in, that’s mostly consumption, not investment. It could turn out to be a good investment, but there’s no guarantee, and you shouldn’t analyze it as such.”
BUY IF YOU CAN AFFORD IT
![Emotional woman in panic grabs head and looks frustrated at camera realizes big failure poses worried dressed casually isolated over white background. Negative human feelings. People lifestyle](https://mrsdaakustudio.com/wp-content/uploads/2023/08/shocked-woman-in-yellow.jpeg)
“It’s a good idea to buy if you want to buy and can afford the repayments. Ignore all the other stuff.”
HOME-OWNERSHIP A HEDGE AGAINST INFLATION
![Young beautiful blonde woman wearing casual clothes scared and amazed with open mouth for surprise, disbelief face](https://mrsdaakustudio.com/wp-content/uploads/2023/08/shocked-and-worried.jpeg)
“You have to live somewhere, so a house is partially an investment and a lifestyle choice. Rent goes up; mortgage payments don’t.
Inflation is with us, whether it’s obvious or hidden. The government doesn’t stop “printing” money, so you need some assets to keep up with inflation.”
DEPENDS ON YOUR LOCALE
![Woman surprise holds cheeks by hand. Expressive facial expressions](https://mrsdaakustudio.com/wp-content/uploads/2023/06/shocked-in-yellow.jpeg)
“Depends on your locale. For most people in the USA, the math says it’s cheaper to rent.”
HOUSING IS ALWAYS A GOOD INVESTMENT
![Shocked black woman looking at camera with open mouth, expressing amazement on pink studio background. Millennial African American lady feeling surprised, receiving unexpected news](https://mrsdaakustudio.com/wp-content/uploads/2023/06/shocked-woman-crazy.jpeg)
“Housing is always a good investment because :
You have a place to live. This is important because life is about living, not just about ROI.
Housing prices go up significantly over time, always.”
HOME PRICES TO SKYROCKET WHEN INTEREST RATES DROP
![surprised and shocked teenage girl isolated against grey studio background](https://mrsdaakustudio.com/wp-content/uploads/2023/06/wow.jpeg)
“Here is my thought process.. the homes cost a lot. Interest rates are high. What’s going to happen when the rates go down? People will flood back into the market like we have never seen before. Prices will skyrocket when rates go back down to the 4s.”
PERSONAL HOMES ARE A LIABILITY, NOT AN ASSET
![Young black man wearing casual pink sweater afraid and shocked with surprise and amazed expression, fear and excited face.](https://mrsdaakustudio.com/wp-content/uploads/2023/06/wtf-man-1.jpeg)
“Personal homes are a liability, not an asset. Depending on the eternal inflation of home prices is, while historically reliable, gambling at the high stakes table.
Unless you find a way to make your home an income-producing property (i.e., a home office that saved more than a rental would) it should not be considered anything but a low liquidity, somewhat volatile store of wealth.
The harsh reality that home prices need to take a sharp decline for the majority of younger generations to be able to afford homes now is something existing homeowners refuse to acknowledge and fear ever happening.”
CONSIDER YOUR FINANCIAL GOALS
![Photo portrait of upset shocked woman with open mouth isolated on pastel pink colored background.](https://mrsdaakustudio.com/wp-content/uploads/2023/08/wtf-shocked-angry.jpeg)
“Another thing to consider is what you pay for the same property. If there is enough savings, you can stash that money into an ETF or mutual fund that tracks the S&P 500.”
DEPENDS ON HOW LONG YOU WOULD LIVE THERE
![Beautiful young blonde woman wearing colored sweater afraid and shocked, surprise and amazed expression with hands on face](https://mrsdaakustudio.com/wp-content/uploads/2023/08/wtf-woman-3.jpeg)
“I think it depends on how long you would live there and your alternative housing options. If you are confident you could stay in the house for ten years, I think everyone would expect prices to be higher and rates to be lower, especially if the other option is renting for that period. Even with high rates you’ll build equity every month and get tax breaks in the interest.
Index funds are a good option, along with money market accounts. I can’t remember being able to get 5% on a money market in my adult life.”
WAIT FOR A YEAR
![The young woman's portrait with happy emotions on studio background](https://mrsdaakustudio.com/wp-content/uploads/2023/06/wow-shock-wtf.jpeg)
“I’d say wait a year…..but nobody knows for sure. You are gambling either way. If you plan on staying in the house for at least seven years, you’ll probably be ok. It also depends if you’re living at home or renting.”
12 Cities in the U.S. That Are a Total Nightmare to Live In (or Visit)
![young pretty woman looking shocked, angry, annoyed or disappointed, open mouthed and furious](https://mrsdaakustudio.com/wp-content/uploads/2023/04/shocked-woman-scam.jpg)
Looking to relocate? Here are 12 cities in the US where you might want to avoid setting up roots. These cities are plagued by problems like high crime rates, poor infrastructure, and a lack of affordable housing. Read here.
15 Things We All Need to Stop Buying. It’s Total Waste Of Money
![A beautiful young Caucasian woman with her hand in her hair.](https://mrsdaakustudio.com/wp-content/uploads/2023/04/confused-woman-close.jpg)
To save money, reduce clutter, and help the environment, here are 15 things we can all stop buying.
15 “Non-Religious” Cults That Almost Feel Religious. Are You Guilty Of Being A Part Of Any?
![Photo crazy astonished guy see incredible vacation sales discounts impressed, raise modern bright specs wear white clothes isolated over blue color background](https://mrsdaakustudio.com/wp-content/uploads/2023/04/unbelievable-1.jpg)
So many fads are turning into some “divine” stuff people follow with an “almost religious” devotion. Here are 15 non-religious cults that feel like religious ones.
15 Physical Traits That Might Make You Less Dateable
![Close up photo beautiful her she lady unexpected epic fail arms hands fingers near mouth bite teeth eyes full fear oh no expression wear casual white t-shirt clothes isolated violet purple background.](https://mrsdaakustudio.com/wp-content/uploads/2023/02/oh-no.jpg)
Physical attraction is an essential factor in many romantic relationships. However, it’s important to remember that everyone has different preferences. Read here.
The Exodus: Why People Are Leaving Religion in Droves
![Surprised and impressed brunette girl looking amazed and pointing fingers down.](https://mrsdaakustudio.com/wp-content/uploads/2023/03/shocked-young-woman.jpg)
Religion is a personal and complex topic, and there are many reasons why someone might turn their back on it. Read why people are leaving religion.
This article was originally published on Mrs. Daaku Studio.