Is owning a home a liability or an asset?

This is a troll, right?

Depends on happiness. If you're miserable and stuck in that place because of your job/life, then your home has forced that upon you with a mortgage trap from the matrix.

Nonsense. It is the most tangible investment one can make. Simply buy smart and plan on staying for a while and you’ll more than likely win. Worst case scenario, you HAD A PLACE TO LIVE.

Asset. :)

Renting, Meh. The apartments in my area are very expensive as they should be, overpriced really. Parking may be an issue, neighbors always changing??? Some idiot starts a fire or whatever, your apartment gets affected. When you leave you leave with nothing.

I mean it's both right.

It's a liability in the sense that you have the loan (not technically part of the house), property taxes, income, and required upkeep.

It's an asset in the sense that it will likely appreciate at or slightly above the rate of inflation and you can sell it, borrow against it or rent it out

Right now, renting a single family home is significantly less expensive than buying (over the short term). However if you stay long enough, it will likely be worth more than the difference between rent and the money you put into the house.

When we're in bubble territory like this, a new home purchase is a liability. But if you bought a few years ago when interest rates were low, your mortgage is the asset.

Keep it on the 'crete.

It's both.
It's a huge liability if you bought more house than you can afford and have no idea what all of the upkeep costs are.

For most uneducated people it's a liability.

For some lucky long term homeowners it can be an asset, but you always have to live somewhere, so it's not really an asset, it's more like a necessity.

Depends (1) where you live and (2) where you are at in your life.

In places with more progressive housing policies and comparatively affordable rents (think Denmark), purchasing a home may not be the logical decision. Even in the US, renting can make more sense. Like, if you are unsure if you will need to move in 3-5 years, closing costs may make buying more expensive. Or if you think your money would be better off invested in a more diverse set of asset classes.

But, buying a home is not purely a logical decision. There is an undeniable emotional value to a home that, for many people, is more important than leading a perfect financial life.

Speak with a financial advisor, and maybe a therapist. Homes are a big decision.

Its an asset

In 2007, purchased a townhouse for $310K. From 2008 to 2014 it was under water in terms of value, dropped as low as $150K.

In 2015 began renting it out. The rent covered most of the mortgage.

Also in 2015, purchased a forever home in Maryland for $520K.

Today the townhome is worth $350K but the rent market almost doubled so the current rent covers the mortgage and is turning a profit with money left over. So renters are paying that house off.

The forever home is now worth $800K.

In literal terms, the equity in your house is an asset. It accounts for about half of the net worth of all homeowners in the country.

If you have negative equity it's a liability.

It's liability until it's paid for less so after it's paid for. It's only an asset if it's putting more money in your pocket than it is costing you. Commercial real estate if done right is an asset residential real estate is not, more of a speculation in that you may sell it for more than it cost you to buy or perhaps not. then there is inflation vs nominal dollars. That being said we all have to live somewhere.

It has been great for last 10 years. The price has gone up so much that there is no way you didn't do well. You actually did awful if you didn't own at least one. BUT there is no guarantee it will continue the next 10 years.

That only matters when it comes time to sell. Seems to me the market peaked February 2022 price declines since then. Markets are frozen due to interest rate increases, no one wants to give up pandemic low mortgage rates. Where I live houses go up for sale and go unsold for months. Sellers unwilling to adjust prices down to meet current reality

I bought in 2021 and sold in 2025 at a gain of 12%, so it hasn't declined, just hasn't skyrocketed. But if you had a tiny under 3% rate loan back then and the value of the home is still going up a little bit it was a good deal. But if you did a large down payment to avoid a 3% interest rate that wasn't the best decision as the stock market has gone up like 50% since then.

i see a bunch of youth-oriented perspectives talking about homes as business assets, etc.

let's try you are retirement age and living off social security and retirement, and you either have a paid off home to live in, or ever increasing rent to pay.

along with the potential precariousness associated with living someplace at a landlord's whim. at an age when one cannot necessarily go out and get a job.

It is both, if you have a mortgage. Oh, and please learn the difference between "discus" and "discuss".

Half right. It's renting that will do your head in.

Who knows, mortgage, insurance, maintenance.

spent all weekend drywalling that sucked. Next is flooring to fix that previous water damage.

back yard is a mess.

its cool you know

jlcollinsnh.com

Why your house is a terrible investment

JL Collins

Intro by JL’s Team “Is now the time to buy a house?” As national mortgage interest rates hit +7% and housing prices fall across the country, many people are asking themselves this very question. But like the stock market, “in...

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Great post.

Although I do own house.. er the bank owns it for now. I'm happy owning a house because my interest rate is only 2.5% and the purchase price was about 135,000 so my monthly payment in about $1,000 for a 15 year mortgage. It think it will be worth it own to keep my expenses low in my (hopefully early) retirement. out 135,000 so my monthly payment in about $1,000 for a 15 year mortgage. It think it will be worth it own to keep my expenses low in my (hopefully early) retirement.