A home is not a financial investment

This is one of the myths our government, regardless of party, has told us. That's how we got Fannie Mae, FHA, VA loans, etc. That's why the government, not the banks, gave us the subprime mess.

A home you purchase with a mortgage can be an investment in many things--your family, your neighborhood, shared values with the community, an idea, etc., but if you want a building as a financial investment, buy one and rent it. Then it's an investment.

We own two homes (until last year we owned three because we held the mortgage on our son's home). Right now, both our primary residence (a condo) and our summer cottage (on leased land) are undergoing repairs for water damage. One indication of how desperate the economy is: the Lakeside contractor we hired was 1) able to get here within weeks of calling him, and 2) when he found roof damage, he was able to get a sub here within hours. Normally, (i.e. during the Bush boom years) we could wait months, or even have a no-show.

At our condo, the guy we hired to stain the deck is also a general "handy-man" and he found that our hose connection in the rear under the deck was leaking inside the house when we watered the flowers! Well, that could certainly account for the mold on the books!

So with home values declining, our upkeep is on the incline. But your primary home really always required upkeep--but you have to live somewhere, right? A summer home, however, (or winter if you go south) is just a step above a boat, which is a hole in the lake into which you throw money.