Home is not investmentThere is nothing wrong with home ownership, but stop thinking of it as an investment.

According to Freddie Mac, home prices have gone up an average of 3.7% per year in the last 30 years while inflation has been 2.8% per year. Not included are the costs of buying and selling a home.Besides the fees paid to buy and then again to sell, how about property taxes, insurance, and repairs? I sold my home recently for roughly twice what I paid. But if you factor in inflation -and only inflation, I actually lost money. If you then start to add back in the cost of remodeling to make the house even salable and the cost of home owner’s warranty, real estate commission, and a few other bucks here and there, I lost at least $100,000.

To figure out the base cost of inflation, visit the CPI Inflation Calculator which shows the true value of your home’s sales price. As an example, the CPI Calculator shows that the value of $100,000 in 1980 dollars is $286,000 today. You might feel that you nearly tripled your money under those circumstances -but in actual fact, you broke even.

So, own a home for the pride of ownership and because you want to own the place you live -but don’t think of your home as an investment, because the chances are that it is not.