04/08/2025
Not everything in life is about money.
Buckle up ladies and gentlemen, I'm about to go on a Tuesday afternoon rant! I don't mean to offend anybody, but I'm going to say what needs to be said: we need to stop pretending that buying a house and investing in the stock market are the same thing. They are not.
I'll explain what I mean here, then I'll share 4 specific takeaways 👇🏼
For years Realtors have been reminding people of the importance of building equity rather than renting. This is still true.
HOWEVER, there is one importance difference: the house you live in is a consumption decision. It's not an "investment." The purpose of your home is to enjoy it! It has practical value, regardless of whether it goes up in value or not.
It's like the car you drive: technically it's an asset, but no one buys a car because they think it'll increase in value. They buy a car because they need reliable transportation. Some people buy more expensive cars than other people do, because they are willing to spend more money. However, we all agree our cars are not an "investment."
Your house is the same thing.
The problem today is that too many people are trying to apply "investing wisdom" towards buying a house for their family. They're trying to time the market. But this is not an apples to apples comparison.
The purpose of stocks is to grow in value over time. The only reason you buy stocks is to make money. That's very different from the reason you buy a house! The purpose of a house is to be lived in. If it goes up in value, great. If it doesn't, that's okay too. The memories you make are the dividends that matter.
THEREFORE,
1) Thou shalt not buy a house you hate just because it's "a better deal" than another house
2) Thou shalt not sell a house you love living in just because someone offers you a lot of money
3) Thou shalt not move just because you find a great deal
4) Thou shalt not not assume that your house will automatically increase in value over time.
It might, it might not. Focus on the memories you make there. Not everything in life is financial.
It's better to spend 20 years living in a house that brings you joy in a neighborhood you love....than to live in a house you hate in a neighborhood that bores you. I promise you that the house going up or down in value will not change your mind. Some things in life are more important than money.
Tbh, this is why I've talked some people OUT of selling their house the past few years, even though I would've made a commission and they would've made a lot of money at closing.
Not everything in life is about money! Real estate included.
Okay, rant over 🙂
-Brittany
