How to Eliminate the Two Biggest Sources of Financial Stress
The Art of Manliness
Negative carry asset - house
Treating your home like an investment by expecting to make a profit may not always be fruitful. The speaker's experience of owning a house from 2015 to 2024 highlights that despite the increase in house prices during this period, they did not make substantial profits. The maintenance costs for the house, which included replacing the roof, air conditioner, painting, and power washing, consumed a significant portion of the potential gains. Additionally, the upcoming real estate commission of 6% for selling the house further diminishes the profits. This instance emphasizes that a house can be viewed as a negative carry asset if not managed wisely, as the expenses incurred might outweigh the expected returns.
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