Re: Owning a house.
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Results oriented-thinking about the short-term. Long-term houses appreciate at almost exactly the rate of inflation. And there are costs that go along with this (interest, taxes, maintenance, etc). Sure, you are leveraged so that can help, but it is often a much better idea to put that money elsewhere and rent.
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in a typical market, a house appreciates about 8% every year or another way to think about it is it doubles in value every 10 years. that does much better than inflation.
regarding leveraging, my current house i used about $8,000 and bought the house under market value for $125,000. in four years it has done exceptionally well due to various market conditions and i expect to sell it for around $250,000 this summer. after broker fees i expect to net a bit over $100,000. not bad for an $8,000 purchase four years ago.
you may not like the occasional headaches that go along w/ owning but it's hard to argue w/ the numbers.
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