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Nonsense. Investments should be profitable, but that profit doesn't have to take the form of capital gains. Plenty of businesses are profitable by using asset
by cperciva 5y ago
Nonsense. Investments should be profitable, but that profit doesn't have to take the form of capital gains. Plenty of businesses are profitable by using assets rather than by reselling them.
The exception of course is if it's impossible to make a profit using the asset. Rent controls are very effective in this regard: If you ensure that being a landlord yields no operating profit, the only incentive to buy property is if there's hope of future capital gains.
- judge2020 5y agoThe point is that housing is required to live. Apartments aren't being built at a rate that keeps YoY growth in houses to <5%, which is a lot of growth compared to inflation and wage trends but would be healthier than the growth we're seeing in some regions (eg. Atlanta suburb Lawrenceville, with 27% YoY growth[0]). 0: https://www.zillow.com/lawrenceville-ga/home-values/ https://www.zillow.com/lawrenceville-ga/home-values/