Saturday, March 19, 2011

Buy a Home, Lose $65,000

Here is a heart wrenching tale of how a married couple bought their first home and promptly lost $65,000.

That is real money out of their pocket, not just paper equity.  I also applaud the honesty of the writer who really explains his situation with great personal detail.

This article makes the key point I have been telling readers for more than ten years.

YOUR PERSONAL RESIDENCE IS NOT AN INVESTMENT.

Your own home is a liability, not an asset.  Treating your home as a retirement savings plan is a disaster waiting to happen, as this unlucky couple learned the hard way.  For most people, especially these days, renting a home makes much more sense than buying one.