When it comes to buying a home, think of it as a place to live — not as an investment.
A home is simply "a roof over your head" and a place to create memories, said Douglas Boneparth, certified financial planner and co-author of "The Millennial Money Fix," in an interview with CNBC's Frank Holland during the CNBC Make It: Your Money virtual event on Oct. 17.
Even with homes typically selling for hundreds of thousands of dollars, Boneparth advises buyers not to think of them the same way they might think of a 401(k) or a stock index fund.
Instead, it's a "home base" that provides stability, especially for young families. A home can have sentimental value too, but otherwise it's "very tough to calculate the return on your investment," he said.
"If you sell the home many years down the road and you make some money — fantastic," Boneparth said. However, it's very difficult to keep track of "every little repair and addition you've made to that house" over "20 or even 30 years" of ownership.
Boneparth makes an exception for rental properties, since they can generate revenue for their owners.
'Buying a home has never been harder'
It's also worth noting that for many people, owning a home has become exorbitantly expensive.
"Buying a home has never been harder for your average American," said Boneparth. "And it doesn't look like that's really changing anytime soon."
Homes now sell for a median of $416,100, according to the most recent U.S. Census Bureau data. And considering that the U.S. median down payment on a home is over $25,000, the upfront costs of homeownership are too high for many buyers.
In addition to the down payment, there are a number of ongoing costs specific to homeownership, too, including mortgage payments and interest, property taxes, utilities, homeowners association fees and ongoing repairs.
All of these expenses may make homeownership out of the question. "You really have to be a very diligent saver" to "make that down payment and comfortably live in that house every month," Boneparth said.
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