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>Property is an appreciating asset Isn't this the cause of the housing bubble? If everyone thinks this? Why wouldn't profits be driven out if everyone thinks l
by Rainymood 10y ago
>Property is an appreciating asset
Isn't this the cause of the housing bubble? If everyone thinks this? Why wouldn't profits be driven out if everyone thinks like this? Simply curious.
- usgroup 10y agoOver-valuation causes bubbles as opposed to appreciating assets. E.g. the common wisdom says equity is a generally appreciating asset class because the expected return over a long horizon is positive. Similar is true of property except that no-one will give you a 40 year loan of 400k for peanuts to go trade the S&P.