06/12/2026
Yes, your home is an investment.
That's my belief when someone asks, "is your home really an investment? Are you better off buying or renting?"
I did some deep diving into this age old question with a loan officer who specializes in real estate lending.
We wanted to run the numbers and see if it yields more owning a home versus renting and investing the difference.
As we discussed it, I noticed you'd have a long list of assumptions before even starting the numbers.
Because taxes become a big factor (capital gains, property taxes, tax write offs)
Assumed rates of return and cost of living are also key.
Other aspects such as maintenance, updates, DIY or professional work, etc. all play a major role.
Are we comparing a diligent, knowledgeable investor who lives conservatively to a person whose home represents all of their personality traits?
There are intangibles that a home provides that aren't so easily calculated.
Preferred standards of living can't be ignored. Some people are willing to live in a home that requires a lot of work, while others need something with luxury appointments that's move-in-ready.
The list goes on.
At the end of the day, it's a personal situation. I can show you the numbers, but there's so much more than numbers.
Real financial planning is life planning, and you can't argue with that.
