Real estate is often seen as the ultimate investment, but is it really?
Doug and Ted discuss 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
Debt Repayment Calculator
Debt To Income Ratio Calculator
FREE Credit Rebuilding Course
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