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It's almost always true that holding real estate is better in the long view than selling it. I expect my house to continue to rise in value indefinitely. Doesn'
by eli 11y ago
It's almost always true that holding real estate is better in the long view than selling it. I expect my house to continue to rise in value indefinitely. Doesn't mean it's never the right call to sell it.
- gwern 11y ago> It's almost always true that holding real estate is better in the long view than selling it. Actually, the usual belief held by economists is the opposite: that it's almost never true that holding real estate is better in the long view than selling it and investing it, since the value of land as a fraction of industrialized economies has been constantly falling and conversely, labor/capital rising. (There's also the diversification and uncompensated risk issue.)
- Trombone12 11y agoKeep in mind that economist tend to have a long view goes between 1970 and the present (Piketty goes so far back as 1700, which is why he is famous).
- eli 11y agoI think the was my point: it's totally plausible that a country selling off land could have been "profitable" depending on what the country was going to do with the proceeds.