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>normally the value of a house climb [sic] faster than inflation It would be more accurate to say "in a healthy, growing economy, the value of a house climbs f
by cgearhart 11y ago
>normally the value of a house climb [sic] faster than inflation
It would be more accurate to say "in a healthy, growing economy, the value of a house climbs faster than inflation."
It is not a foregone conclusion that home prices must rise faster than inflation. Like any prospective investor, you must look at the individual factors affecting the property you want to buy before making a decision. Overall, the "home prices rise faster than inflation" trope is incredibly harmful because uninformed investors use it as a heuristic justification for making major life decisions and massive purchases.
Even if home prices did always outpace inflation, it still might not be a good investment. If there are other investment vehicles with a higher yield over the investment period, your money would be better spent there.
- pmelendez 11y ago> It would be more accurate to say "in a healthy, growing economy, the value of a house climbs faster than inflation." I totally agreed, that's what I meant by normally but you are right, it might be not normal at all.