@nobudgetbabe: Your home is not an investment, because you likely haven't bought your home with a wealth building strategy in mind. ⁠ ⁠ (most people don't) ⁠ ⁠ And that's okay - your home doesn't need to be an investment, it can be an emotional purchase. ⁠ ⁠ My first two properties were bought with wealth building strategies - I flipped my first home for a $150k profit, and I turned my second one into a rental. My third purchase? It was purely emotional. ⁠ ⁠ I'm not expecting this home to pay ME, because I bought it to be a family home, to house my family, not build wealth. ⁠ ⁠ Many people don't realize the unrecoverable costs to homeownership, and these can easily eat away at any "gains". ⁠ ⁠ There are ways to use real restate to build massive wealth, and you can incorporate those into your home buying strategy (I teach our students how to do this), but if your home isn't paying you, remember you are paying for IT. ⁠ ⁠ An expense is something that takes money out of your life, and an investment is something that provides you with more money and cash flow.⁠ ⁠ By wrongly assuming your home is an investment when you've purchased it based on emotions (not money making logic), it can stand in the way of you actually investing (which can be detrimental to your financial situation). ⁠ ⁠ Overspending on a home you bought with emotion and justifying it by saying "real estate is an investment" is a bad move. ⁠ ⁠ Additionally, even if you do make money on your home after all costs are considered, you still have to live somewhere - and if all homes have gone up in the same way as yours, you're no further ahead. ⁠ ⁠ Unless you drastically downsize or move somewhere much cheaper, you haven't actually realized any of those gains (you're just living in your money). ⁠ ⁠ You can implement strategies (like buying and forcing appreciation through renovation, flipping, or renting) to turn your home into a wealth building machine- but you need to have a plan and a way to get the money out. Want to learn more? ⁠ ⁠ Follow and start with our free trainings. sign up on our website under FREEBIES 🤍

Nicole Victoria | Money Coach

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Region: CA

Tuesday 28 March 2023 19:24:48 GMT