3 ms·
A lot of people buy housing with the idea that the house they live in is somehow an investment. This is also what was discussed in the article. Long term, this
by ivalm 8y ago
A lot of people buy housing with the idea that the house they live in is somehow an investment. This is also what was discussed in the article. Long term, this is not sustainable. If you rent out property, then it makes sense you can make more than inflation, but if you live in the house, you should have the same ROI as income growth in your area.
- ggm 8y agoYes. I think believing your home is an investment beyond providing your home is a huge mistake. But, its a common huge mistake. The point I was trying to head to, is that rent doesn't have to rise, simply because people think rental investment has to return some arbitrary ROI for the capital invested in it. Lots of forms of investment exist, some of which return less than others, and we have a mix of investments for a mix of reasons. In Brisbane (where I live, and co-own a house I live in which I do not regard as an investment in that sense), rents fell last year due to oversupply. Prices fell too, but the two were somewhat de-coupled. Supply of affordable housing fell too. Some people think there is a nexus, I think the fall in affordable housing is down to lack of rent controls, long term tenancies, and state and federal convergeance on housing policy.