“The basic necessity of life is having a roof over your head, you own it to live in it for the long term and keep it, forget about all this investment cr_ap and appreciation business. My mom has a grade 4 education and bought a house back in 1980 in the middle of downtown Toronto for 50,000 dollars. It’s worth close to 700,000 dollars now. She had no clue houses could appreciate, in fact, she has no idea what appreciation was. Heck, she has no idea what a stock is and how to buy it. We rented out all 7 rooms to pay off the mortgage in 5 years time. What do you know, we still live here and my mom, who made only minimum wage all her life is a millionaire!!! She stopped working at age 49! All she does is watch tv and go out to restaurants. Simple frugal life.
Ignorance is bliss!!
Don’t buy and sell, buy and sell, you’ll only be losing money from all the cost. If you like your house and the location is great, you keep it for the long term. At an average rate of 2 percent compounded annually, you’ll eventually be a multi-millionaire.”
– Motown Philly at National Post 14 Sep 2012
The making-a-million-bucks part of the equation is completely dependent on where in the cycle you buy.