Was my California home a good investment?

Photo Credit: Go Daddy

What homeowner doesn't ask this question? While there are many emotional and intangible factors that make your home more than just a monetary investment - sometimes it just pays to know the dollars and sense!

Home Value Calculator

I found a great calculator on the CNN Money website which helps you compare what you paid for your home and its current value versus if you have put the same investment into stocks or bonds.

The information is calculated based on the average US home price (information from the Case-Shiller National Index) and closing stock prices of the S&P 500 index.

Click here to check out the calculator

For Example:

If I bought my home in January of 2004 for $200K - and it is approximately worth $270K now, I made a 2.9% return. In this case I would have been better off to invest in stocks or bonds.

Screen shot taken 7/14/14

Using the same calculator, I can see that if I bought a home in January of 2009 for $450K, I would need to sell it for $750K today to see nearly a 10% annual return beating out the bonds....but it still wouldn't have beat out the stocks.

Screen shot taken 7/14/14

What does this mean for you?

I think the most we can ascertain from this is that investments are tricky. Seeking advise from an investment professional can help you understand the fluctuations in the market so you can make the best decision for yourself.