Is Your House a Home or an Investment?

by Kristina on February 13, 2012 · 2 comments

Good Morning DINKS.  As winter is winding down and spring is approaching a lot of clients are coming into the bank for their mortgage pre approvals.  Clients want to guarantee their potential mortgage rate for the next 3 months while they search for their dream home, or at least while they search for their next home.  I have a question for all of you homeowners out there….Is your house a home or an investment?

Many people buy their dream house because they want to have a place to live and a place to call home; but other people buy a home with the dream of making a profit over the next few years when they move out and sell the house.

If you are a homeowner how important was the price of your home? If your price was the deciding factor in your home purchase was it because you had a budget, because you were worried about the expensive interest costs, or because you wanted to buy your home at the lowest possible price so that you can sell it for the largest possible profit at a later date.

Very often people put their blood, sweat, and tears into renovating their home and decorating their home because they want to enjoy their living space.  However, some people renovate and upgrade their house because it increases the resale value of the house.

I personally love the freedom, flexibility, and non commitment of renting my apartment.  I don’t have any plans to buy a home in the near future.  Just because we don’t own a home, doesn’t mean that our rented apartment isn’t ours.  I absolutely love the decor of my apartment.  I am not crazy about the apartment itself, but I really love the colours, the art, and the decor of my apartment.  Of course if I had more space I would do some things a little differently, but I never intended to live here for the long term.  Our current apartment was supposed to be a temporary situation, but three years later my boyfriend Nick and I still live here.

Moving is definitely a lot of work and it can also be a lot of trouble. I guess that Nick and I weren’t ready to go through the hassle of moving again, but now I am at the point where I can’t live here any longer because I am ready for a change in my living arrangements.  That is the beauty of renting an apartment.  Once a year we can decide to leave without any trouble, hassle, or headaches.  If we really hate our apartment we always have the option to sublet our apartment and move on without visiting a bank or a notary.

MSN posted an article that featured the Best Homes of 2011 according to House and Home Magazine.

What is your favourite type of home decor?

1. A Modern Decor Home that features Art, Deco, and Furniture.

2. A Grand Georgian Home with Symmetry and very clean lines but still offers comfort.

3. A Tailored and Timeless Home add colour to a classic design. Colour is not the focus, it’s the accent.

4. A Scandinavian-Style Home can feature a Brick Fireplace, and Rod Iron Light Fixtures with Wooden Furniture.

5. A Casual Lakeside Home offers “The Hamptons look”. It combines Pastels with lots of sunlight. Furniture can be white or light wood.

6. A Naturally Chic Country Home is a home in the woods but it doesn’t necessarily have to be a log cabin.

7. A Retro-Inspired Home offers 1950s and 1960s style with a modern twist.  This style is popping up all around. Retro appliances add a nice touch of colour and style.

Photo by James Thompson



{ 2 comments… read them below or add one }

1 Clara February 14, 2012 at 10:05 am

I lived in a market for almost 20 years where it’s much, much cheaper to rent than to buy. I loved my rental apartment and while I kept my eyes open to buy (and saved for a down payment) I never found anything that I could afford that wasn’t a downgrade from my 2-bedroom brownstone with patio in the NYC area. The 1890s apartment was deteriorating though, and the 80s appliances were terrible. Well, after hitting my 40s I finally bought a home, and I got something I love. Yes, there are plenty of costs aside from the down payment and taxes but it feels great to have the space and privacy.
So I can see both sides of the issue. I never did understand the term “throwing away money on rent”. You need a roof! How is that throwing money away? I loved renting, but now I finally got to the point in my life where I was ready to settle down and make something my own. I just have to get used to the idea of doing outdoor maintenance! So I could see you following the same path.

2 Kris @ Debt-Tips February 14, 2012 at 12:28 pm

If the value goes up, its both. If not, its just a home. I say that partly in jest, but partly in truth as well. Of course, its a stable place to live so we don’t have to be at the mercy of a landlord. But hopefully over time the value will go up so we don’t end up as “renters” to our bank.

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