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This also highlights a simple, mathematically inevitable truth: Homes cannot be both affordable and a good investment at the same time.
by bunderbunder 8y ago
This also highlights a simple, mathematically inevitable truth: Homes cannot be both affordable and a good investment at the same time.
- zaroth 8y agoIf home prices were perfectly stable, adjusted for inflation, they could still be a good “investment” in the sense that rents would be much higher, for the tax benefits, due to artificially low mortgage rates, or as a vehicle for forced savings. I do wonder if the average family could afford to own a home, even at 3.5% interest, if it’s value did not appreciate. And I wonder if the rent had to cover the entire investment return for landlords, what would that do to average rental rates?