[QUOTE=stb;8263626]
By the house. Much as I love them, horses are money pits, not investments.[/QUOTE]
Houses are also money pits.
Stuff happens to houses just as it does to horses. Even new build. Just replaced an a/c unit on a rental, $5.5k. Need to do the furnace & blower as well, another $4k. There is a list of major systems in houses to maintain/repair and eventually replace, as well as all the “minor” but still-costly stuff.
Houses lose equity fast if they are not maintained up to a good standard. Sort of like paying lots of $$$ for a going show hunter, then turning him out for a year and expecting to get the same again on the next sale.
“The market”, generally, may or may not apply to a specific house. The more defects and problems, the less it is worth.
A house-owner needs to be setting aside money every month for the big things that happen. Some people rely on credit card, but you have to maintain an open balance and then, when something does happen, pay interest on gradual payoff. So you suffer the budget hit anyway, plus interest.
[QUOTE=Guilherme;8263642]…
Houses, properly selected, will generally increase in value. Right now be wary because the housing market is “bifurcated” in lots of places. There is a shortage of “entry level” houses so they are seeing a value “spike.” Middle and upper level houses are more plentiful and not appreciating so rapidly.
Buy the house, but buy smart! 
G.[/QUOTE]
Nothing about this statement is true in every market.
[QUOTE=NoSuchPerson;8263719]I am widely considered to be sensible, responsible, and level-headed.
At your age, if you really want the horse, go buy the horse. But do not buy this horse as an investment. Do not factor any potential future profit into your decision-making process. If you want this horse for yourself, with a full understanding of the costs involved in owning it and you can afford all that, buy the horse. If you can accept the fact that, due to illness or injury, you could end up with a useless, worthless (in the monetary sense) pasture pet, then buy the horse.
If you really want a house, then buy the house. But, in today’s market, depending on where you live, you cannot count on any significant appreciation in value. I own a house right now in another state that is worth less than it was when I bought it 7 or 8 years ago. It’s in a great rental market, which is it’s only saving grace, but it’s also in a gradually changing neighborhood and will likely continue to diminish in value. And I’m probably going to have to put a new roof on it in the not too distant future.
When making this decision, make sure you really understand and have considered the true costs of home ownership. It’s way more than just the principal, interest, and escrow payment.
I guess the short version of what I’m trying to say is that “buy the house” is not really the default sensible answer, so don’t do it just because you think you should.[/QUOTE]
^^^ THIS
[QUOTE=Foxtrot’s;8263855]… But houses get to be paid off eventually, especially if you double up payments
when you can and low interest rates are a boon.
…
Houses are long term investments, the markets go up and down, so you need a long term goal. Eventually they pay off. [/QUOTE]
Understanding that this does not mean “eventually you get back what you put in”, because counting all the maintenance/upkeep in many cases that won’t be true - the owner may not even get back the purchase price, much less interest, taxes, etc.
It DOES mean that the owner builds equity, and that is a significant asset (but not always liquid). A 2nd mortgage or line of credit can tap the equity once enough is developed, but of course that may then take away the equity.
A 15-year mortgage is what every homeowner, especially new buyer, should consider. The payments are frequently not much higher than 30 years, the interest rate is lower, and compared with a 30-year mortgage you save 15 years of interest, an amazing amount of money. In 8 years you have 50% equity, a big payoff in terms of financial flexibility AND cashing out when you sell.
[QUOTE=Foxtrot’s;8263855]… But these days I tell my kids the trick is “mortgage helper”. My daughter is a home-owner at a young age, and going to school, but she has a plain little house, by no means her dream house, has put in a beautiful 2-bedroom suite in the ground floor (not below grade) and has rented the upstairs. The rent pays the mortgage, she pays the utilities and taxes and lives at a cost much below if she rented a suite elsewhere and paid someone else’s mortgage.
She is in a University area and there is rental demand and potential for appreciation.
…[/QUOTE]
^^^ Very smart !!!
[QUOTE=normandy_shores;8264269]If the mortgage and associated costs (property tax and insurance) cost you the same or less than rent, then do it. Means rentals are strong in your area and you could always rent out the place if you had to relocate and couldn’t yet sell for a profit. Just buy smart!
The horse is a way bigger gamble as far as an investment no matter how bad your market is. I’d go for the house and half lease, and eventually you can get a horse of your own that maybe doesn’t have such a hefty price tag?[/QUOTE]
^^^ Very good advice.
