Most visitor's to my blog just take for granted that we [well me] are always talking about stocks when we talk about investments. But that's not true. When I say you should never have more than 20% of your investments [20% in a small portfolio, 4% in a large portfolio] in any one position I mean "all" of your investments. And that includes your home. For years I have heard some really smart people say that owning a home was a really bad investment.
In fact one day while watching CNBC, four of the worlds most famous investors were being interviewed and the host mentioned that in his research for the days interview he found that not one of these men owned a home. When he brought it up to them they all giggled like small children at how foolish of an investment a home was.
I must admit, I am partial to this way of thinking as I do rent a small townhouse. And in the last two months I have had a large portion of the wooden fence replaced. Had the dishwasher replaced. And the landscapers here at least four times. Cost to me in money and time....zero!
Now mortgages and real estate investing is not my "specialty" to say the least. But I have pondered, when do you really get to take a profit on your home? Well, I knew their was someone out there much smarter on this subject than me, and I found him. It's Jack Hough of Smart Money .Com and I found this great article he wrote on Yahoo Finance. Take a couple of minutes to read it and feel free to leave me a comment on your take.
Click Here To Read Jacks Complete Article
1 comment:
Fine. Fine. Fine. I will renew my lease and keep renting! It is nice having less stress with the maintenance and landscaping.
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