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Houses do have utility. Doubling your money in an asset that provided living space for 30 years instead of paying rent is pretty great.
by vikingerik 5y ago
Houses do have utility. Doubling your money in an asset that provided living space for 30 years instead of paying rent is pretty great.
- namecheapTA 5y agoOk yes but even if this was a rental home and the renters basically paid the mortgage.. so you didn't get any utility out of it. 30 years later you made $200k, even if you put basically nothing down. As a return it's a lot percentage wise. Overall though, it's not life changing for most people. It only gets crazy money in the most desirable of areas. And that desire circle is basically described as driving range from the highest paying jobs.
- Mikeb85 5y agoBut they don't have so much utility that they should offer such returns on top of depreciation. The market is broken.
- iso1210 5y agoIt's not the house that appreciates much in value, its the land the house sits on.
- Mikeb85 5y agoI'm aware. But the land mainly has so much value because cities refuse to expand despite the demand.
- iso1210 5y agoExpanding horizontally doesn't solve land price values -- prices will still be higher in the dense centre The solution is to make better use of valuable land by encouraging (or enforcing) high density