[bob47]

Originally Posted by CoachKandSportsguy

Houses are not investments. Houses are shelter costs, which you must incur, either in outright ownership, in debtor ownership or in rent. Doesn't matter if the cost of your house goes up or down, but insisting on increasing house prices is also a recipe for increased costs of insurance, taxes, and repairs. If your house is worth 50% less at the end, so is everyone else's, and you are still at the same economic position as everyone else. And at the end, it doesn't matter any more, as you won't be here. I am not sure why anything matters at the end. . you won't be fretting about your house price in hospice.

Retirement is all about your financial assets ex house, and the cost of your lifestyle. It has very little to do about the change in value of your house.

The current house we live in was purchased in 2004, and it has been underwater for the last 15 years. . so what? doesn't matter what so ever to our ability to live here, nor enjoy our lives. in general over the long term, houses appreciate at about the rate of real GDP, which is about 1-3% per year. . . so that is not any type of investment, but a dependency.

So, since you have a fear of buying an overvalued house, how much can you spend on a house, with increased expenses, and not impact your current life style? That's all you can control. . and even that, you can't control your employment status, except in few and far between cases, ie the top 1% types.

So worry about income persisting, rather than an out of your control fluctuation of your shelter, which everyone else is experiencing as well, but still working and enjoying life.

I agree and have always treated a house as an expense, one of the costs of living. If you don't own a house, you have to rent an apartment. If you happen to make money when you eventually sell the house, that's a bonus.