Check out this savy piece of real estate journalism over at the WSJ, debunking the myth that appreciation of homes is automatic money in the bank.

Doing the math, he shows that often appreciation is offset by home improvement costs, repairs, taxes and insurance.

The gem of an insight comes at the end of the article...

Homes can indeed be a great investment. You may not make any money on the appreciation, once you figure in all the expenses of homeownership. But while you are struggling to pay the property taxes and keep water out of the basement, something wonderful happens: You get to live in the place without paying rent.

Still think the big gain from homeownership comes from price appreciation? Consider this: People usually don't retire simply because their house has gone up in value. But you often hear of folks quitting the work force just after making their last mortgage payment. Suddenly, their monthly costs go way down -- and they can now afford to retire, thanks to the delights of rent-free living.