A House Is NOT an Investment - Especially If You Can't Truly Afford It

Real estate is often seen as the ultimate investment, but is it really?
What are the financial realities of homeownership? From the hidden costs of maintenance and repairs to the risks of negative equity, pre-con agreements, and even becoming a landlord. This episode explains why a house may not always be the wealth-building asset it’s made out to be—especially if it’s beyond your financial reach.
2:00 – What exactly qualifies as an investment?
3:45 – Liquidity and diversification: why they matter
6:00 – Doug’s take: a house is a consumer good, not an investment
10:00 – Why owning a home is often more expensive than renting
13:30 – The forced savings argument: does it hold up?
15:00 – Negative equity and the risks of market downturns
16:10 – Preconstruction agreements and the challenges they could bring in 2025
18:20 – The overlooked costs of maintenance and repairs
24:15 – Forced holding: why homeownership limits your flexibility
25:45 – Renting out your home doesn’t automatically make it a profitable investment
27:20 – Ted’s perspective: is owning a house truly an investment?

Learn more from Hoyes Michalos:

What Happens If You Miss A Mortgage Payment?

Will A Second Mortgage Clean Up Your Debts?

What To Do If You Can’t Pay Deferred Mortgage Payments

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Debt To Income Ratio Calculator

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Disclaimer:
The information provided in the Debt Free in 30 Podcast is for entertainment and informational purposes only and is not intended as personal financial advice. Individual financial situations vary and may require personalized advice from a qualified financial advisor. Always consult with a financial professional. The views expressed in this episode do not necessarily reflect the opinions of Hoyes, Michalos & Associates, or any other affiliated organizations. We do not endorse or guarantee the effectiveness of any specific financial institutions or strategies discussed.

[dvdvno]

Great show. Retirement is a big factor also. At some point there is no mortgage to pay.

[MarkoD-kdgy]

The positives far outweigh the negatives ;
- People that own homes, have more wealth, better chances with mating, it is forced saving.
- You can leverage the equity of a house for smart investments ie buying index funds, starting a business
- Banks and insurance companies look at you as more stable.
- You need somewhere to live, especially if you have a family.
- My rental condo helped me build enough equity to get into a house.
- Real estate markets can dip for sure, so can stocks. I own both.
- Rental cost, are writeoffs. Just make sure you have an emergency fund for costs.
- Real estate has helped people get into the middle class, and higher status.
- 66% of Canadians can't come up with $400 other than dipping into a line of credit or credit card. So I can assure, there not having excessing savings in the stock market.
- All you assumptions were on worst case scenarios.

[raguthanabalasingam]

Buying a detached house worked very well for my refugee parents. They are rich beyond their wildest dreams. They love the Greenbelt around the GTA, which caused land prices to spike to 8x, and the Municipal governments that tried to catch some of the land value lift by increasing DC charges to 10x.

[jeffguarino]

Houses can't go up in price and I mean in terms of dollars in a particular year. This is because they have to be affordable and if they increase in real price indefinitely then at some point in the future, no one will be able to buy your house. Thus the price will have to drop. The GIC from the bank can also lose money if inflation is higher than the interest rate. You can also buy stocks that don't pay any dividends and they are investment because the stock grows in price faster than inflation. The liquidity of an investment is irrelevant as to whether it is an investment or not.
So you must live somewhere. If you buy a house and don't pay $1500 in rent, then you can look at your house as giving you a $1500 or more benefit every month. So if you own a house and have no mortgage, then you are getting a benefit or a return on your investment.
My house is giving me money every month but I use this money to instantly pay myself the rent. These guys are having an idiotic conversation.
Furniture has nothing to do with a house, or the appliances. He is making the idea so muddy, I am shutting off this video now.

[NORBERTMagdaleno]

Took a closer look at Adaxum and decided to take a small position in the presale.

[YaseminMehmet-it]

Glad I got into Adaxum during the presale. The project has some promising elements.

[huntingupland]

My house is no longer an investment for myself, thanks to a particular government, it’s now more of an investment so my kid will have a head start when I get off this this great spinning ball.

[IsinDeniz]

ADX has a unique angle with its E-commerce focus. Glad I got in during the presale.

[SebahatEmre]

Happy with my decision to join the Adaxum presale. Let’s see how it performs in the long run.

[CaroylnClarkson]

Got into the Adaxum presale early. Hoping this turns out to be a good investment.

[OmerDucem]

Adaxum is still under the radar, but it could gain momentum soon.

[EsmaAyhan-vrzc]

Adaxum is still early, but it has the potential to grow into something significant.

[JoeyMuhammad-mi]

Took a measured position in Adaxum. Hoping the project delivers on its promises.

[CLIFFShannon-ns]

The Adaxum project has some strong points. Took a position while the presale is still open.

[MichaelPicard-co]

Hi everyone, Adaxum seems like a project with potential. I’m keeping an eye on it after joining the presale.

[EDUARDOSchilling-fw]

Adaxum seems like a solid project, though I’m keeping my expectations in check.

[LyndiaDobbs]

Keeping an eye on Adaxum. The project seems promising enough to have potential upside.

[TylerLevesque-vy]

Adaxum’s approach to integrating E-commerce and DeFi is interesting. Took a position in the presale.

[AmiHarms]

The ADX presale is progressing well. Glad I got my tokens before it’s too late.

[SYDNEYMontanez]

Joined the Adaxum presale early. Hoping it turns out to be a good long-term move.