The Motley Fool Discussion Boards

Previous Page

Investing/Strategies / Retirement Investing

URL:  http://boards.fool.com/resnullius-on-property-that-you-did-not-do-well-30153911.aspx

Subject:  Re: Smart idea or Not? Date:  7/17/2012  5:36 PM
Author:  gdett2 Number:  70860 of 75832

ResNullius,

On property that you did not do well, was that improved property or bare land?

Having moved a number of times and not having a big choice in choosing the timing, our homes have bounced between a near-double in 5 years and break-even in about 4 1/2 years. The worst for selling/buying was 1979 because of interest pressure. 1984 was the easiest buy/sell. These were our homes though, not investment property.

I do not consider a home to live in as an investment. Most people buy a home for their personal needs, tastes and price point. They do not normally look at them realistically as an investment. Personal needs and tastes introduce lots of emotion into the purchase. An investment must not have an emotional tie and should be able to be liquidated when its value hits a target or hits a point where value increase going forward is not likely to happen.

Any investment has performance expectations. When they are not met, the investment should be sold. This applies to growth stocks, income stocks, income property, collectibles, precious metals or any other investment. You can't do that with your home unless you move everyone to an apartment.

I realize that for a lot of people, their home is their biggest single "investment" even though it does not really fit into the mold of a good investment. It is based upon where and how they want to live.

Gene
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us