Good discussion, Topher. Too many people get this wrong, including me when I was younger! I bought a big house because I thought I was "investing". It ate up all my cash flow and left me with little to build my future. Best financial decision I ever made was to move out of that house and turn it into a rental. Now my tenant has been paying my expenses while I get some cash flow and leveraged appreciation. Then I bought another and another and another...all helping to increase my wealth every month. A house you live in just can't do that. Everyone needs a place to live, but it is an expense, rather than an investment.