If you’re banking on your home as a big investment, you’ll want to read this. We’re breaking down the real, often overlooked financial side of owning a home. Time to rethink that mortgage, property taxes, and all those “surprise” repairs that pop up. Let’s dive into the numbers and see what’s really going on.

Alright, let’s get into it. The whole “your home is the best investment you’ll ever make” idea? Yeah, not so fast. We need to have a little chat about this supposed golden goose everyone’s been hyping up since your parents bought their first place in Burnaby for $150k back in the day.

Quick and Dirty Truth: Your home is a lot of things – shelter, stability, maybe even the backdrop to your fantasy football draft (I’m regretting that CMC pick.) But one thing it’s not? A guaranteed investment. Yeah, I said it.

Let’s break down some hard numbers and see why that dream house might be a little more dream and a little less investment win than you thought.

The Real Cost of Homeownership

Okay, so you buy a condo for $500K. You throw down 20% – a solid $100K – and lock in a new 30-year mortgage at 7%. That’s right, 7% – don’t get me started on those rates. Anyway, over those 30 years, you’re shelling out around $700K in interest alone. Add that to your original $500K, and boom, you’re looking at a grand total of $1.2 million.

“But my house will appreciate!” Yeah, maybe. Let’s say it appreciates at 4% a year. Thirty years later, it’s worth $1.6 million. Score, right? Not so fast.

Between the bathroom reno, new roof, strata (if it’s a condo) the property taxes that bleed you dry, and those surprise fixes that show up right when you’re feeling good – you’ve easily sunk even more into this “investment.” Add it all up, and suddenly, your killer deal looks more like… well, just a house.

The Hidden Costs

Oh, and let’s not forget: all that sweet appreciation is locked in a physical thing. You can’t just tap into that equity like you’re cashing out an ETF. Nope, you’ve got to sell it. Realtor fees, closing costs, maybe even capital gains taxes – poof goes that pile of cash you were dreaming of.

Sure, there’s a home equity line of credit, but to borrow that? Another 7% interest.

So while your home’s value might go up, those gains can be eaten alive by costs you didn’t even think about.

Renting vs Buying? Not So Simple

Here’s where we get controversial. Renting? It’s not the money-pit everyone makes it out to be. You’re not shelling out for unexpected home repairs, you can invest that money elsewhere, and you’re not locked down by something that can take forever to unload if the market goes sideways.

We’re seeing this today with the short-term rental ban and former Airbnb properties. It’s not as lucrative to rent out investment properties to long-term renters, and some investors are looking to sell entirely.

The Bottom Line

Should you still buy a house? Sure. Just don’t go in thinking it’s a surefire investment. Buy it because it’s a place to live, make memories, or host your yearly Super Bowl party — I’m HYPED for Kendrick Lamar. But don’t kid yourself into thinking it’s your ticket to financial freedom.

Want to build real wealth? Diversify. Invest in your career, put some cash in the market, and look at different ways to grow your money.

At the end of the day, we at ARC Wealth are here to help HENRYs (that’s High Earners, Not Rich Yet) like you cut through the noise and make smart, informed financial decisions. Let’s make your money work as hard as you do.

ARC Wealth offers tailored financial solutions designed to empower young professionals with high incomes in building and overseeing their wealth.

Whether you’re dreaming of a getaway to Spain or eyeing a brand-new Tesla, we’re here to guide you in realizing both your immediate and future financial goals