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Prof. Krasimir Petrov is an economics expert. He teaches macroeconomics, money and banking, teaches financial literacy courses. On his Facebook page, he regularly posts advice on how and what to invest money in. Here is his expert opinion that housing is an investment.
“If it’s the main residence where you live, it’s not an investment, it’s a consumption. This applies to everything. If you buy a computer for games, chat and movies, obviously it’s a consumption. If you buy a car, you go on vacation and excursions, of course, are consumption. It is an investment when the purchase brings income or when productivity increases. “
“Let me give an example. 20 years ago I started working in a company in the United States. To work, I had to buy a full set of clothes – 5-6 shirts and pants. This was an expense that I had to pay for work. Without it I would not I can make a living. In this sense, my purchase of work clothes can be interpreted as an investment. Then I also bought another computer to learn how to install Windows or Linux. I am buying a computer for learning purposes, I cannot do this. on my personal computer because it would ruin my configuration. Therefore, even the purchase of such a computer is an investment “.
“The main question is how much the asset is used for personal and business purposes. Generating income or upgrading a qualification that will help you generate income in the future is an investment.”
“If you’re going to buy a house to live in, it’s not an investment. It’s a consumption. When you buy a property, don’t fool yourself into making an investment.”
“Of course, I’ll clarify immediately. You are buying a second home. It will be an investment if you rent it. If you are a dentist or a lawyer and you buy a property that you turn into a job, then you already have a legitimate economic activity linked to the generation of income. Now this too can be considered an investment. “
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