Wealth manager: Buying a home is 'usually a terrible investment'—here's why

  • 📰 CNBC
  • ⏱ Reading Time:
  • 42 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 72%

United Kingdom News News

United Kingdom United Kingdom Latest News,United Kingdom United Kingdom Headlines

Wealth manager: Buying a home is 'usually a terrible investment'—here's why via CNBCMakeIt

A lot of people will tell you that buying a home is a good investment, but"that couldn't be further from the truth," says Peter Mallouk, a certified financial planner and president of wealth management firm Creative Planning.

Over time, your home might increase in value, Mallouk says, but it probably won't appreciate enough to offset all of the costs. Instead, if you took what you'd save from not buying a house and invested it in something that's likely to grow in value, such as stocks and bonds, chances are you'd end up with more money in the long term.

Ramit Sethi, self-made millionaire and author of "I Will Teach You to be Rich," has made the same argument. Think about it this way, Sethi suggests:"Generally we can assume that over the long term, if we invest in a low-cost diversified index fund, we get about 7%" in terms of annualized returns.

"For the biggest purchase of your life," he adds,"you should know all the math and how it plays out 20 years in the future."

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in UK
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

MakeIt You still think your assets are secured on exchange you use ? Think again, Do not wait until it happens with your exchange and get a Ledger Nano X now.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Wealth manager: Buying a home is usually a terrible investment'A lot of people will tell you that buying a home is a good investment and that couldn't be further from the truth,' says certified financial planner Peter Mallouk. MakeIt Cuz realtors push you to buy/sell fast instead of waiting for a better price MakeIt A home is a home. MakeIt Have your heard that hackers are aggressively attacking online crypto wallets and exchanges everyday. Make you self a favor and get a best hardware wallet in the world Ledger Nano X and sleep well at night.
Source: CNBC - 🏆 12. / 72 Read more »