Question

How is buying a house to live in a type of financial investment?

Short answer

Buying a house to live generates income, it is a good investment.

Step-by-step solution

Conceopt introduction

Financial investment: an investment that yields a profit asset.

Explanation of solution

A profitable investment is one that yields a profit. Purchasing a home is also considered an investment at the time of purchase. It is less expensive, and when it is sold, it commands a premium price. As a result, the difference is profit driven by the owner. The residence will undoubtedly have mortgage, insurance, and other maintenance costs. Even if we include all of these costs, the owner will still be in the black. Because living in one's own home provides freedom to design, eliminates the inconveniences of moving, eliminates moving costs, and provides psychological fulfilment, these advantages should not be overlooked when making the decision to buy a home.