When is a residence an investment?

No piggy bank, this

Probably never. 147 Byram Shore Road, priced at $5.995 in August, 2017, gradually dropped its price over the years to $4.595, and finally has a deal pending. Owners paid $5.373 in 2005, expanded it by 1,000 feet and performed a complete renovation.

One approach to deciding between buying or renting a house is to check for annual appreciation and average days on the market for the neighborhood. 5% appreciation, say, with an average DOM of maybe 90 days would indicate a decent buy, one with reasonable liquidity.

A cumulative negative return of 15%, as here, and a DOM of 874 makes clear the difference between a financial investment and a place to call home. You want an investment, put your money in an index fund, and use what’s left for housing expenses.