Should your Home be Considered as your Primary Investment?

Posted by on Tuesday, November 5th, 2013 at 9:01pm.

It makes a lot of sense to label your home as your primary investment since it's a wanted and needed commodity anyway. You need to have a roof over your head, so why not make it an investment? It really doesn't make a lot of sense to be paying $1000 for a small one-bedroom apartment month after month to make a landlord rich. It's a lot easier to make payments monthly when you know that they are going towards building up equity as an investment.

This is not to say, however, that your home should be your only investment. You should have a portfolio of various investments that you are building up throughout your lifetime. While you may consider your home to be the primary one, that does not mean that you should rely on it 100% for your retirement income.

You need to be dispersing your money into various investment opportunities during the course of your lifetime. You know the old saying, "don't put all of your eggs into one basket" and it's so true when it comes to handling your finances. There are a lot of things that can come up during your life and the best way to prepare for any of them is through solid investments along the way.

As far as long-term security goes, owning a piece of property is the one investment you can make that will remain stable - especially here in Canada. Real estate has always been one of the safest types of investments you can make. Even when the Canadian economy goes up or down, things eventually get straightened out. Your home or property is a long-term investment goal that is one of the closest investments to a sure thing that you can find.

Should it be your primary investment? Definitely! Should it be your only investment? Never! Build up a diverse portfolio that includes real estate and you'll be set for life.

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