3 ms·
Inflation can make it an invest and keep affordability the same. It isn't 'by definition'.
by scottcodie 5y ago
Inflation can make it an invest and keep affordability the same. It isn't 'by definition'.
- arcticbull 5y agoGenerally return on investment is measured in real dollar terms - not notional terms - meaning after accounting for inflation. It's not a gain if it keeps pace with inflation. Certainly not after you net out maintenance. It needs to appreciate in real dollar terms like 1-2% per year just to break even.
- scottcodie 5y agoThat's real rate of return, not return on investment
- arcticbull 5y agoAh yes, my bad. Thanks for the correction.
- refurb 5y agoThat’s a wildly crappy investment if you get out the same or less than you put in in real dollars.
- scottcodie 5y agoSure, I'm just saying that it's possible to make an investment to preserve capital that doesn't impact affordability. It is still an investment because it beats holding cash. A 'good' investment would be one that beats inflation but housing can simply be an investment vehicle to keep pace with inflation.