"The other mistake to make is to assume that the house, in which you live, is considered an investment. Your house is not an investment, regardless of what marketing and sales will tell you. A house is an illiquid asset, but not an investment, unless you are renting it out collecting income"
I wouldn't be too sure about that statement.
"The word investment is used in a lot of different contexts and can mean a lot of different things. But from a purely financial perspective, this definition from the Merriam-Webster dictionary works well: “the outlay of money usually for income or profit.”
Exactly! Take your expenses related to your house (insurance, property taxes, amenity fees, water, sewer, irrigation, garbage, electric, gas, etc.) and see if that exceeds a 5-7% return on the value of your home. Mine doesn't and it isn't even close, so for me and probably many others, a house IS an investment. It might not be a wise, financial investment but a house CAN be an investment by definition.
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