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The fact that real estate is so fundamentally an investment here (in the US/in the western world) is a deep underlying part of the problem. I agree - this pers
by rpearl 9y ago
The fact that real estate is so fundamentally an investment here (in the US/in the western world) is a deep underlying part of the problem. I agree - this person made the right decision, from their point of view, and it will be a good return on investment. But I'm definitely sort of existentially disappointed in the sort of social system that makes housing an investment like this.
- pcwalton 9y agoMe too. I would take 0% return on investment and reasonable housing costs over obscene housing prices and some return on investment in a heartbeat. For people who just want a comfortable safety net for themselves and their children and not speculation, investments should be liquid and diversified, not tied up in one illiquid asset.
- rubicon33 9y agoYou and me both brother. Want to get REALLY depressed? Consider this FACT: Foreign investors (rich people) can purchase homes in the US (San Francisco), and have no requirement to live in them, or use them. They can be purchased as purely speculative investments and it happens ALL THE TIME. I spoke with a real estate agent at a major SF firm, and asked them point blank - WHO can afford these insane home prices? He generated a nice little chart for me of the buyers by career. Software Engineers was number 4. #1 - Foreign Investors (mainly Chinese) #2 - Trust funds #3 - I forget (this was 4 years ago) #4 - Software Engineer How / why it's legal for foreign investors to hold onto homes that people could be living in is beyond me. It destroys communities, and seriously hurts everyone.