First, let’s discuss whether a house is a consumer good. In economics, consumer goods refer to those goods or services purchased to satisfy people's personal needs and desires. In contrast, investments are goods or services that are purchased to increase wealth or generate income. Houses are often viewed as consumer goods because the primary reason most people buy a home is to live in and enjoy life, not to invest or earn income.
Of course, a house can also be considered an investment, as house prices are likely to rise over time, increasing the value of the property. However, the real estate market is highly volatile, which means investing in property doesn't always pay off. Also, costs such as property maintenance, taxes and interest can erode potential gains.
When considering whether to buy a home, you should take your own personal circumstances and needs into consideration. If you're looking for a stable place to live and a steady source of income, buying a home may be a good option. However, if you haven't established a stable career and financial foundation, you may want to consider other housing options, such as renting or sharing a home.
If you decide to purchase a home, you need to take your personal financial situation and goals into consideration. When buying a home, you should not spend all of your savings on expenses such as the down payment and renovations. You should keep a certain amount of emergency reserves to deal with unexpected situations that may occur. In addition, you should take into account your other financial goals, such as retirement savings, children’s education savings, etc., to ensure that your home buying decision does not negatively impact other important financial goals.
In short, whether a house is a consumer product or an investment product depends on personal circumstances and needs. When considering buying a home, you should consider your financial goals and circumstances and make an informed decision. Buying a home can be a good option, but you need to explore it carefully and consider the proportion of your investment if you decide to buy a home. This depends on your financial goals, income and expenses, and local real estate market conditions. Generally speaking, the down payment ratio for buying a house should be between 20 and 30. This avoids high loan interest and additional home insurance costs, and better protects your assets in volatile real estate markets.
In addition, you also need to consider your repayment ability. Buying a home requires a long-term loan, so you need to make sure you have a stable source of income and can pay the loan principal and interest on time during each monthly repayment term. If your repayment capacity is insufficient or your financial goals require more capital expenditure, you may consider reducing your investment ratio or choosing a more affordable housing type and location.
Finally, you need to understand the local real estate market. Home prices and market trends may vary across regions and cities. When deciding to buy a home, you need to carefully research local home prices and market trends and anticipate future trends. If you think the real estate market will continue to rise, then you can consider increasing your investment proportion, but if you predict the market will fall, then you may need to reduce your investment proportion or wait and see for the time being.
In summary, buying a home is an important decision that requires careful consideration. Whether a house is a consumer good or an investment depends on your personal circumstances and financial goals. You need to determine your investment proportion, repayment ability and local real estate market conditions, and make informed decisions to ensure that your investment can bring you actual benefits and an improvement in your quality of life.