Apologies if this question is off point (this is Aussie Stock Forums after all) but I would find any opinions interesting.
Essentially, I am struggling to come up with a sound financial reason to own a home. So far as I can tell:
1. You pay a fortune in interest (for which there is no tax benefit)
2. The 'asset' really isn't one... at least until you've realised the value
3. The risks are high... think 18% interest rates in the early 90s... you can very easily lose everything
4. The growth in value of residential property is, over the long term, pretty modest.
5. It appears that the cleverest way to own residential property is to own a rental property
Am I missing something here? It seems I would be much better off financially, over the long run, by living in rented accommodation, and putting my money, tax effectively of course, into a portfolio of assets of different types.
What am I missing? Or is home ownership simply still the Aussie dream, and a strategy born more from sentiment than financial rigor?
Cheers for any comments!