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Updated 4 months ago on . Most recent reply

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49
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Pedro Andrade
28
Votes |
49
Posts

Title: “Warren Buffett Said Buying a House Isn’t a Good Investment — Was He Right?”

Pedro Andrade
Posted

Years ago, Warren Buffett made headlines saying buying a primary residence isn’t a good investment — and honestly, he had a point.

He wasn’t talking about rental properties or investment real estate. He was referring to your personal home. Something that feels like an asset, but for many, becomes a financial anchor — especially when they overstretch or treat it like a wealth-building vehicle.

Here’s why Buffett’s take resonates:

  • A primary home generates no income.

  • You pay interest, taxes, insurance, and maintenance for years.

  • Liquidity? Limited.

  • Appreciation? Not always guaranteed — and often barely keeps up with inflation after expenses.

But here’s the irony: I speak with property owners all the time who hesitate to rent out a home they already own, even when the numbers make sense. They hesitate to turn it into a real investment.

Instead of viewing it through the lens of cash flow, leverage, depreciation, and appreciation — the four ROI's of real estate — they see it as a burden or emotional asset.

Buffett’s quote wasn’t anti-real estate. He’s a big believer in smart investing. The takeaway is this:

👉 If your home isn’t putting money in your pocket, then it’s not an investment — it’s a liability.

I’d love to hear your take:
Do you agree with Buffett, or is your primary home part of your wealth-building strategy?

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Ken M.
  • Investor
  • Scottsdale, AZ Austin TX
902
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1,476
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Ken M.
  • Investor
  • Scottsdale, AZ Austin TX
Replied
Quote from @Pedro Andrade:

Years ago, Warren Buffett made headlines saying buying a primary residence isn’t a good investment — and honestly, he had a point.

He wasn’t talking about rental properties or investment real estate. He was referring to your personal home. Something that feels like an asset, but for many, becomes a financial anchor — especially when they overstretch or treat it like a wealth-building vehicle.

Here’s why Buffett’s take resonates:

  • A primary home generates no income.

  • You pay interest, taxes, insurance, and maintenance for years.

  • Liquidity? Limited.

  • Appreciation? Not always guaranteed — and often barely keeps up with inflation after expenses.

But here’s the irony: I speak with property owners all the time who hesitate to rent out a home they already own, even when the numbers make sense. They hesitate to turn it into a real investment.

Instead of viewing it through the lens of cash flow, leverage, depreciation, and appreciation — the four ROI's of real estate — they see it as a burden or emotional asset.

Buffett’s quote wasn’t anti-real estate. He’s a big believer in smart investing. The takeaway is this:

👉 If your home isn’t putting money in your pocket, then it’s not an investment — it’s a liability.

I’d love to hear your take:
Do you agree with Buffett, or is your primary home part of your wealth-building strategy?

He believes you shouldn't have to put work into your investment.

Houses require upkeep.

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