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Everyone is born short housing. Buying your first house is covering a short position. Renting instead of buying is maintaining a short position. Buying your sec
by jdmichal 10y ago
Everyone is born short housing. Buying your first house is covering a short position. Renting instead of buying is maintaining a short position. Buying your second house is taking a long position.
(Copied directly from my other post in this thread [0], though if you do a search I've said the same thing several times.)
[0] https://news.ycombinator.com/item?id=13376763 https://news.ycombinator.com/item?id=13376763
- SilasX 10y agoOthers have elaborated further; here's Felix Salmon and Nick Rowe: http://blogs.reuters.com/felix-salmon/2009/07/17/who-cares-about-future-house-prices/ http://blogs.reuters.com/felix-salmon/2009/07/17/who-cares-a... http://worthwhile.typepad.com/worthwhile_canadian_initi/2009/07/we-are-born-with-a-short-position-in-housing.html http://worthwhile.typepad.com/worthwhile_canadian_initi/2009...