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I suspect all you can argue nowadays is that it _did_ work. With housing costs increasing faster than inflation, forcing people to spend money on rent instead,
by t-writescode 6y ago
I suspect all you can argue nowadays is that it _did_ work. With housing costs increasing faster than inflation, forcing people to spend money on rent instead, which has no investment potential, I don't think it still works.
- goldenchrome 6y agoYour own house isn't an investment because you always need to live somewhere. Investments are things you can spend like index funds and bonds.
- zamfi 6y ago> Your own house isn't an investment because you always need to live somewhere Ehhh, yes and no. Plenty of people who bought nice-ish houses in the Bay Area in the '70s and '80s sold them in 2014-2018 and retired outside the bay with a nice extra pile of cash. You need housing, but you don't need a crazy expensive house in a crazy expensive area.
- 2ion 6y agoIf not that it's an insurance against future rent payments and it creates different options. The total cost of ownership with a high likelyhood for an well-priced and appropriate property with appropriate mortgage payments is lower than runaway rents in hcol areas. Lastly, you can trade property value and QoL by neglecting upkeep at any time to make up a shortfall in income and even "run down" the property over quite some time, at extreme levels not even using utilities, which is not an option if you're paying rent -- try neglecting your rent payments.
- nradov 6y agoResidential real estate is usually a good investment even if you happen to live in it. When you retire you can access the equity through a reverse mortgage.