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iQuestions Faculty, Ron Blue 
 
 
Question: 
 
Is a house a good investment? 
 
Answer: 
 
You know, the operative word here is “house.” A “house” might be an 
investment—I can buy a rental house, and it is an investment—but 
typically, when I am buying a “home,” it is a totally different thing that 
I’m buying.  
 
A lot of people get really confused, because they know that housing 
prices have increased, and so they say, “The best investment that I 
have ever made is my home.” 
 
Now, the reality is an investment is something that you buy with the 
anticipation you will sell it when it goes up in value, or it will provide 
an income for you. Obviously, a home doesn’t do that, it’s a place 
where you’re living. A home is something totally different than a 
house.  
 
Now, I would also realize that in many, many cases, the biggest and 
the best asset that somebody has is their home. It is something that 
does go up in value, and I would suggest to you that what they have 
done is made a really good purchase, but you can confuse what you’re 
doing when you call your home your investment, because typically you 
might over-buy when you put it into the perspective of an investment. 
 
Think of it as a home that is a really good purchase that might go up 
in value, but it’s really not an investment. There are other things that 
 
 
have investment value to you that you should be investing in—such as 
mutual funds, 401(k)’s, retirement plans, and things like that. 
 
Your home is a place to live. It may be a good purchase, but don’t 
ever put it into the category of an investment. 
 
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