4 ms·

For housing to be a good investment it has to be competitive with other investments, meaning much higher than inflation. Since housing is a large and increasin

• twblalock 4y ago
  > For housing to be a good investment it has to be competitive with other investments, meaning much higher than inflation. You could make the same argument to say that bonds are a bad investment. It's not true, depending on what the investor expects. Raw performance is not the only criteria by which investments are evaluated. Another aspect of investment vehicles is the risk:reward ratio. Bonds are low-risk and thus expected to have lower returns than a higher-risk investment like stocks. That does not mean that bonds are a bad investment. It simply means they have a risk:reward ratio suitable for some investment purposes but not others. Before the current supply crunch, housing was a reasonably safe investment that resulted in a reasonable return over the lifetime of a homeowner -- and it did tend to keep up with inflation. It was not a "bad" investment. It was not growing over 10% a year like it is today, but that's a recent phenomenon caused by shortages.
  • bradlys 4y ago
    > You could make the same argument to say that bonds are a bad investment. It's not true, depending on what the investor expects. This is truly semantics and is quite pedantic. I’d highly recommend avoiding these types of arguments. You’re digging in for a very specific and weird reason - I’d suggest not.
    • pnutjam 4y ago
      classic whataboutism.