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[–] obvious_throwaway1 0 points 5 points (+5|-0) ago  (edited ago)

Generally speaking, in the typical case you need to spend money to renovate/modernize/maintain the house, and the traditional 30-year mortgage is mostly principle until the 10th year. Since the average home owner sells their house within 7 years of ownership, this means it's a minority that actually does end up making money selling their house.

Cost + appreciation - renovations/repairs/maintenance - sale price = net loss for most people.

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[–] ScottRockview ago 

Don't forget property taxes and insurance. I can think of no other "asset" that doesn't generate an income where you pay tax on it each year and have to insure against its loss.

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[–] obvious_throwaway1 0 points 1 point (+1|-0) ago 

Both of which are the reason I said even if it's paid off, you still don't own it - you're just renting it from the government.

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[–] hey_girls_pm_me_toes 2 points -2 points (+0|-2) ago 

Even with all that work you are adding value to your home. I never heard of anyone losing money when they sold their house unless they were idiots who bought in a bad area or got screwed on their rates

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[–] obvious_throwaway1 0 points 4 points (+4|-0) ago  (edited ago)

You don't know many people, then. Or they lie to you. You strike me as someone who's never owned a home if you think it's that simple.

Once again, the average person loses money when you factor in the cost of actually maintaining a property. Please understand that just because your mortgage is one number and you sell the house for a higher number does NOT mean you "made money". You actually have to deduce the cost of upkeep - utilities, yard-work, repairs, etc. Then we didn't even begin to cover the deprecation of the dollar during the duration of ownership through inflation.

Source: wife is a real-estate agent.