Regardless of what your parents or grandparents may have told you, your home is not your retirement plan! Look at property with an investor mindset.
- Most people want to own their own home and it makes sense.…A home offers security and stability…and it binds you to a community…and there can be economic benefits to buying a house.…A house closer to work can lower your transportation costs…and a house in a good school zone…can be a tremendous boost for your kid's future prospects…and some economic systems also give advantages…to home ownership by offering a tax deduction…on mortgage interest expenses.…But if you're thinking about buying a home as an investment…and you're rooting your retirement strategy…on the increased value of your home, think twice.…
First of all, as with any asset,…there's no guarantee that the price of a home will go up.…We saw in the US in 2008 that housing markets…can fall significantly in value.…So gains in home prices aren't guaranteed.…And houses are expensive.…There's fees for brokers, home inspections,…appraisals, surveys, title fees, origination fees.…And when you own a home, you have to pay to maintain it.…Homes aren't like other investments.…
- Recognize the strategy used to combat inflation while still working.
- Determine whether investing in a company or working for a company is more profitable.
- Summarize the concept of Dollar-Cost Averaging.
- Identify the simplest, easiest investment opportunity available for young workers just starting to invest for retirement.
- Explain what “diversifying” means by using an example.
- Determine whether incurring debt can have a financial advantage.