From Toby Young in the Telegraph
When I have thought about it, I’ve thought that the best possible place to put any spare cash is into my home, because that’s likely to appreciate in value more than any other investment vehicle.
Do you think property’s a good investment then?
That’s indisputable, isn’t it? It’s not worth saying property’s a good investment. It’s a bit like saying: the sky is blue.
First, property’s unlikely to be beaten by any other investment vehicle, and second, you live in your home so it’s in your interest for your home to be as spacious and comfortable as possible. You don’t get any benefit from most other investment vehicles.
Does this really add up? OK, you get some utility value for your home, but you're paying a lot more in interest than the amount it rises. And you've got to heat it and maintain it. And you could put the money into other investments.
But there's also a thing I ponder about space in all of this. Me and Mrs The Stigler live in a house that's pretty snug. I'd prefer a little more space, she's not bothered, and I'm not that bothered, so we're not extending. On the plus side, that means we're living mortgage free.
We get around the lack of space by, if you like, outsourcing space. So, if my parents come to stay (which isn't often), we put them up at the hotel down the road. It's about £75/night, but a couple of times a year, that's going to be cheaper than financing the build of an extension to have a spare room that's sat empty. I like the idea of having an office at home, but in reality, I prefer to work where there's some background noise, like in a cafe.
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