the sale of an asset with positive money flow is an investment in another case, and this I do not say what keynes said. In conclusion when we buy a property are not making an investment we are making an Exchange. Now still practical we enunciemos the reasons because a House It is not an active: 1. you have to pay for public services 2. If you buy a house you want it furnish and purchase new appliances and other goods 3.
It is likely that you pay for additional services such as internet and TV cable 4. You have to pay taxes on this property or not this mortgaged 5. You have that make market in short your House is an obligation, an expenditure, i.e. your home each month takes money from your pocket, so your home is not an investment for the simple and simple reason that so you are valued will not receive cash for this until you sell it, and when this happens you must deduct fixed expenses and variable expenses and see what was your cash flow, this without counting the tax you need to pay on the sale of that property and the accumulated inflation. Another common misconception is that the long-term property root is valued, an against example is the current financial crisis from which we are leaving.
Now the question isn’t your home is an asset? But for whom represents your House an asset?, the answer to this questions is: the Bank keep in mind you if feel that he is living in the same, that property is Bank until you do not pay the penny. As a result with the above the middle class has been living in the illusion that buying a House is a safe investment, also do not have the factor that some day for any reason your income will decrease, either by inflation to quito to that family to purchase, you must pay more taxes or by that you has been dismissed from his job therefore their source of income has diminished and your home will not be you and yours will be evicted, in addition if there is a safe investment, i.e. If the risk were not the main variable in the investment process everyone would already be millionaires. Original author and source of the article.