Is your personal residence an investment?
Many people think so, and it certainly can be counted towards your net worth – but where does your home fit into an investment portfolio?
Dan Green, Founder of Growella.com, says:
- There’s lots of utility in renting. You can get a lot for less money without a longer-term committment.
- Owning a home has expenses that come with it.
- You should budget 1.5% of the home’s value towards repairs.
There are costs to consider when buying a home as an investment:
- Real Estate Taxes
- Home Owner’s Insurance
- Other applicable insurances like Flood Insurance
- Alarm systems or monitoring
- Liability Insurance
The benefits can come in other ways. Dan Green talks about Emotional Return:
- Over time you can see the value of your property go up
- You have a place to store your things
- You can customize the appearance and utility of the place where you live
- The comfort of knowing a landlord won’t evict you
The benefits further compound if you purchase a multi-unit residence. You live in one unit and rent out the other(s).
Today’s episode is sponsored by BUZZ Index
Today’s guest, Dan Green:
Dan Green is Founder of Growella.com, a blog and website focused on helping you grow your wealth and your life.
For a quick bio of each of our show participants, head on over to our panelists page.
About our sponsor, BUZZ Index
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Here’s how it works:. First, BUZZ targets the most mentioned large cap U.S. stocks across the Social Media landscape. The more active the conversation, the greater the reliability of the BUZZ.
Each of the most-mentioned stocks is then given an insight score based on BUZZ’s proprietary analytics and the 75 stocks with the most Bullish scores are included in the Index. Each month the BUZZ is tracked to capture the latest Big Data driven insights and then the 75 companies with the most Bullish scores are selected, positioning BUZZ to capture the highest return potential.
Invest in the wisdom of crowds. Visit MoneyTreePodcast.com/BUZZ for more information.