3 ms·

A house is also an investment in the future. I'm sure these folk don't believe in the future either.

• yardie 13y ago
  The future says there is a backlog of overvalued houses for the next 3-5 years. A house can be a good investment, but it becomes a bad investment if you are caught when the bubble bursts.
  • buckbova 13y ago
    A real estate bubble burst, which we already went through just recently, doesn't affect current homeowners. It only affects those who need to sell at that moment and have been a homeowner for a short while. I am betting my home will be worth well more than it's worth right now in 3 to 5 years. But, I'm in a coastal city where homes are always in demand.
    • yardie 13y ago
      I grew up in a coastal city (Miami) and watched prices climb 100k, then bolted to 500k-600k before settling back into 100k-200k again. Houses were always in demand but prices were constrained by average salary (35k avg) until investors got involved and banks took the constraints off mortgage requirements. I watched a friend put her college graduation money as down payment on a 4 bedroom house and struggle (she couldn't afford to go out, couldn't even afford to eat meat) for a few years all in the vain belief that it was an investment. She aged about 10 years in that period time.