Hi John. My sense is that the investment in our primary house is not as good as an investment as one might think once the sums have been calculated. One often hears how so and so bought for R1m and sold for R2m five years later. What they exclude are the transaction costs, bank fees, estate agent fees, taxes, renovation costs, maintenance, insurance, rates etc,etc. Add all those up and the time factor and one may come to a different conclusion. It's the difference between the FACT (R1million increase in value)and the TRUTH. I reckon one should be able to outperform property by investing in quality companies over the long term. They both have their advantages and disadvantages. Property benefits from long term gearing but has very high entry/exit costs (properties valued above R1 million). Whereas share investing benefits from much lower transaction costs but one will find it difficult to get high long term (> 5 years)loans at favorable rates. Certainly no 100% loans available here. On pure investment criteria, I reckon one should achieve better returns via long term share ownership assuming one has equal knowledge about the two asset classes. However, perhaps it's wise to at least own ones primary home, even if only for diversification purposes. After all, isn't ones home ones castle? Your thoughts John?