Myth #2: A House Is a Great Investment
Financial planners will tell you that you shouldn't think of a house the same way you think of other investments, like stocks, bonds, or mutual funds. Here's why:
Big emotions. A house is where you live, love your partner, raise your children. You'd be a strange bird indeed if you felt the same attachment to a stock as you did to the place you call home.
Big transaction costs. You can buy and sell securities with relative ease and at little expense. By contrast, you may need months to sell a home. The seller typically pays a 6% commission to the real estate agent who handles the sale, while moving costs and closing costs on a replacement home often add another 4% or so to the toll. That means 10% of the ...
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