2 ms·
“Real estate should be treated as consumption, not investment.” Wow that’s quite the blanket statement to make - and no, it should not generally be considered
by loloquwowndueo 4y ago
“Real estate should be treated as consumption, not investment.”
Wow that’s quite the blanket statement to make - and no, it should not generally be considered consumption.
The article delves into the “rent vs buy” thing and it’s not as black and white as “let’s be against home ownership”. One has to do the math and decide what makes sense.
Also, it’s very US-centric :) the “everything is consumable” mentality permeates every pore of this article.
- imtringued 4y agoHousing is consumption for the person living inside of it. It is a depreciating asset and you have to constantly put work into it. The only part that doesn't depreciate is the community around the house and that isn't an investment either.
- mytailorisrich 4y ago> It is a depreciating asset Well, no it isn't hence why it is viewed as an investment!
- loloquwowndueo 4y agoHouses need maintenance in order to maintain their value. Cars (which are depreciating assets) need maintenance but still lose value. There is a difference. Also - I’m not going to give specifics / anecdata but where I live, house values have gone up almost 100% in 5 years. I fail to see how that constitutes a “depreciating asset”.
- javanissen 4y agoThe house depreciates. The land underneath it appreciates fast enough to make up for it (in the aggregate).