Originally Posted by
jwslam
Probably already said somewhere in the last 50 pages but here is my stance and I don't understand why anyone would argue.
For your primary residence, real estate is an EXPENSE. It is not an investment until you're 25 years out and mortgage free (rent equivalent).
Whether you make 200% gains or it goes down to $0, the mortgage you pay needs to come out of your pocket anyways.
The purpose of "timing the market" would net you a better or worse home for the same money, but at the end of the day you are shelling out money to have a roof over your head. Your benefit comes from 25yrs from now when you shell out $0 rent.
If your property goes down to $0: so what, you would've spent that money on rent anyways and it would've been washed away.
If you break even: Great! I've have not gained any money in terms of TVM for inflation, but it's more than nothing.
You make 200% gains: So what? You still have to have a roof over your head. You gonna sell your $400k house that inflated to $1.2m, and now go live in $400k taking $800k gains and running? By that kind of inflation you'd be looking at a bachelor suite.