Leo, good discussion. You are right that buying a house to live in does not mean you have purchased an asset. Most houses will have very low or even negative rates of return when you include the expenses. This knowledge should encourage us to keep our housing costs as low as practical (rather than "investing" in a big, nice house). That leaves more money left over for investing, which can be in rental houses, the stock market, or something else. Those are actual assets that can help you get on your way.