Deciding if your home was a good investment might sound like a cut and dry kind of operation. Plug in the numbers and see what the bottom line is. Totally objective, it’s definitely the way to measure things.
But the truth is you need to look past the numbers and find out what’s going on in the background. My first word of warning: don’t try to do this unless you bought the home as an investment.
Imagine trying to explain to your children why the home they grew up in wasn’t a worthwhile investment. To them it’s not the dollars and cents of it. It’s home. How could there even be a price for that.
So that’s the first thing to remember. If you bought the home as an investment and for sure if you never lived in it, go ahead and decide on how much money you made.
But point number 2: don’t count the “gain” in only dollars and cents. I have real estate investments that I completely lost my pants on. And yet those were the most valuable. I gained so much more than money on them. I gained experience. I gained the ability to realize mistakes and learn from them. You can’t put a price on that either.
So when you decide to find out if your investment paid off or not, remember to decide first what answer you want. Because a negative answer could really be a win!