Right, but it's really only an investment property if you already have somewhere else to live. It's more of a consumable asset with a tightrope walk between transaction costs, upkeep costs, depreciation, and inflation vs market price increases. And if you live there, it's different because to sell it you have to become homeless and/or use the money for new accommodations. Assuming that your investment has done well because housing prices have risen, then your new accommodations will likewise be more expensive too.
It might pay off a bit if you can see it through, especially if you can then move to a lower cost-of-living area, but it's hard to tell 30 years in advance whether you'll be able to keep that commitment and if it will pay off better than investing in index funds or other investments. Certainly some people found out the hard way in 2008 it doesn't always work out that well. In general, it may sometimes slightly beat inflation if you're lucky but under-performs the stock market.
The best real estate investment you can make is your own home. 100% guaranteed occupancy, no property management, 0% turn over, deductions on property tax, federal taxes, etc...
It might pay off a bit if you can see it through, especially if you can then move to a lower cost-of-living area, but it's hard to tell 30 years in advance whether you'll be able to keep that commitment and if it will pay off better than investing in index funds or other investments. Certainly some people found out the hard way in 2008 it doesn't always work out that well. In general, it may sometimes slightly beat inflation if you're lucky but under-performs the stock market.
- https://www.investopedia.com/ask/answers/052015/which-has-pe... - https://www.cbsnews.com/news/history-says-home-real-estate-i...