***Not all assets are created equally. When you purchase something, it's usually an appreciating asset or a depreciating asset. During your financial life, you want to purchase as many appreciating assets as possible as these are purchases which will gain in value over time. On the other hand, you also want to purchase depreciating assets only when it's necessary since these items will lose value over time. Understanding the difference between appreciating assets and depreciating assets is important to improve your overall finances.
The purchase of a home is considered an appreciating asset. While it's certainly true that the value of homes can fall over short periods of time, the general assumption is that a home will increase in value over long periods. Since a home will general increase in value over time, it often makes sense to purchase one as you can actually make money by purchasing and holding onto it. On the other hand, there are a lot of purchases that we want to make, but they are depreciating assets. Timeshares, boats and recreational vehicles are all good examples of depreciating assets. These are usually "wants" and not "needs" of the person buying them, but they lose a huge portion of their value the instant that they are purchased. Boats and recreational vehicles can lose 20% or more the instant that they are purchased. Timeshares are so bad that you can lose 90% or more. Except in very rare occasions, you are going to lose a lot of money on these purchases if you ever decide to sell them at a later date.