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This was historically true in the 70s and it continued for decades after....until the bubble burst.
Right, and as you point out one could have said in 2005 that they are guaranteed increases in home value since it had been that way for decades, but it didn't work out that way. Real estate doesn't guarantee an increase in value going forward.
Right, and as you point out one could have said in 2005 that they are guaranteed increases in home value since it had been that way for decades, but it didn't work out that way. Real estate doesn't guarantee an increase in value going forward.
It has been proven again and again by researchers of all political bents or whatever that investing in S&P 500 beats homeownership in terms of gains. This is pretty consistent even when either market experiences gyrations and or setbacks.
You buy a home to live in/raise a family; period end of discussion. Anything else is gravy.
Sadly or whatever owning a home has become one of if not the biggest de facto retirement plans for many Americans. They may not invest and or have savings (for various reasons), but they've got that property which is tantamount to putting all one's chickens in that single proverbial basket.
This in part accounts for some of the high home prices being seen around USA. Sellers either cannot or will not accept lower numbers because they *need* and or were planning on major income from home sale to fund various schemes or plans.
It has been proven again and again by researchers of all political bents or whatever that investing in S&P 500 beats homeownership in terms of gains. This is pretty consistent even when either market experiences gyrations and or setbacks.
You buy a home to live in/raise a family; period end of discussion. Anything else is gravy.
Sadly or whatever owning a home has become one of if not the biggest de facto retirement plans for many Americans. They may not invest and or have savings (for various reasons), but they've got that property which is tantamount to putting all one's chickens in that single proverbial basket.
This in part accounts for some of the high home prices being seen around USA. Sellers either cannot or will not accept lower numbers because they *need* and or were planning on major income from home sale to fund various schemes or plans.
It's true the broad markets have returned ~6%+ yoy net inflation for generations. Home ownership has returned less for sure. That does not mean homeownership is a mistake. For many it is/can be a pathway out of the lower classes.
Right, and as you point out one could have said in 2005 that they are guaranteed increases in home value since it had been that way for decades, but it didn't work out that way. Real estate doesn't guarantee an increase in value going forward.
It's true the broad markets have returned ~6%+ yoy net inflation for generations. Home ownership has returned less for sure. That does not mean homeownership is a mistake. For many it is/can be a pathway out of the lower classes.
No one ever said owning a home was a "mistake"; though for some it very well turn out that way.
Lower classes got out of their situation via homeownership largely by fleeing current busted/hoods/inner city/urban areas to better areas.
Post WWII the lower and lower middle classes who fled (then) declining cities move to the suburbs where everything from schools to healthcare was vastly better. Themselves and more importantly their children on average benefitted.
This is still true today. Why do you think Obama/HUD and others are on the warpath again to bust the remaining nice suburbs? Garden City, LI. Westchester, NY, etc... all were in Obama's crosshairs and still within HUD's and various groups like NAACP.
Even within cities such as New York, progressive/liberal/democrats are pushing low income (which today has become a code word for minorities) into luxury or whatever housing in the name of "inclusion" and "equality". This to ensure that unlike the "white flight" of 1950's through 1970's minorities aren't left behind in areas that lack same high quality services found elsewhere. So they will push them in even at cost of huge subsidizes.
It's true the broad markets have returned ~6%+ yoy net inflation for generations. Home ownership has returned less for sure. That does not mean homeownership is a mistake. For many it is/can be a pathway out of the lower classes.
In 1918 you could buy a cow with a $20 gold piece.
In 2018 you can buy a cow with that same gold piece.
A $20 federal reserve note wil get you 4 pounds of hamburg.
Inflation is a tax. This fact used to be taught in Econ classes.
It is no longer PC to teach facts. Kids are taught to validate their emotions.
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