The past twenty years of rising house prices have drawn many into thinking their home is an investment.
But when you think about it, rising prices aren’t the same as rising values. It’s unlikely that the next twenty years will continue the rising-price trend, at least, not at the same rate of increase.
A home, as Jennifer Roback-Morse says, “…should make your heart sing.” If, when it comes time to sell a home, its price has moved in line with CPI, and it has served the owner’s lifestyle requirements, then, like any other lifestyle choice, it has served its purpose.
Any seasoned investor will agree that prices of investments don’t always rise – sometimes they go down. People who held investments during the GFC, and also regard their home as their superannuation may be facing disappointment as the price of their home remains fairly static over the next few years