We all want to buy a house to stay in it. People used to invest a lot of amount in a house where they stay. I know it's an asset as well as an investment. And people spend a lot of amount on it thinking it will increase in value and then they can get a huge amount when they sell it. Now tell me how many of the people actually sell a house where they stay.
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If it's not absolutely necessary,people usually not sell their house where they stay. That means that house is actually a dead investment. Now when you calculate your net worth you will not calculate the amount of your house because you will not sell it. If you have more than 1 house, then might be you can sell one. But especially people keep that 1 house in their name so that actually they have 1 house of their name.
Yeah, when you are retired you can sell your current house and buy a new house but mostly people don't do that because they don't want to relocate to a new location after they have stayed in one location for a good amount of time. What I have seen is that say you someone has bought a house and after he is gone, their children sell that house so eventually you are not able to get benefit from the house. Though you are staying in that house but actually you are saving the rent and that's not a investment which can give you returns as such.
And that's why people who wants to retire early, they don't invest their money on the real estate early on because it cannot give a huge returns back. They invest in equity and once they are financially free, they try to invest the money or rather but a house just for staying purpose. So I feel if the house you stay is a dead investment, then actually we should not invest a lot of amount in it.