541 – A House Is Not an Investment If You Can't Afford It

541 – A House Is Not an Investment If You Can't Afford It

Author: Doug Hoyes January 11, 2025 Duration: 31:05

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

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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.


Doug Hoyes sits down each week with a different specialist to untangle the complicated feelings and hard numbers around owing money. The conversations in Debt Free in 30 move beyond simple scare tactics or dry theory, focusing instead on actionable strategies for managing debt, rebuilding savings, and making informed investing choices. You’ll hear from trustees, financial planners, and counselors who explain concepts in plain language, stripping away the industry jargon that often leaves people feeling overwhelmed. Whether it’s navigating a consumer proposal, understanding credit scores, or starting to invest with a tight budget, this podcast provides a clear-eyed look at the steps toward financial stability. Doug’s approach is grounded and pragmatic, reflecting his deep expertise in the field, making each episode feel like a direct consultation with a knowledgeable guide. Tuning in regularly offers a consistent source of demystified advice, turning what can be a stressful topic into a manageable process. It’s that blend of expert insight and relatable conversation that defines this particular personal finance podcast.
Author: Language: English Episodes: 100

Debt Free in 30
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