▲
2
0
▼

Shiller explains why owner-occupied housing is a poor investment


               
2013 Feb 7, 11:23pm   71,540 views  127 comments

by golfplan18   follow (1)  

http://ochousingnews.com/news/shiller-explains-why-owner-occupied-housing-is-a-poor-investment?source=Patrick.net

Despite the fact that house prices crashed, wiped out millions of loanowners, and wiped out the illusory equity of an entire generation, people persist in believing owner-occupied housing is a good investment. Most people believe house prices appreciate 5% to 10% or more each year and by simply owning real estate they can become wealthy. It doesn’t work that way. Over the long term, house values increase with wage inflation as buyers bid up prices with their increasing incomes. An amortizing loan is a forced savings account — assuming the owner doesn’t refinance or HELOC this money out and piss...

#housing

Comments 1 - 1 of 127       Last »     Search these comments

1   David Losh   @   2013 Feb 9, 1:20am  

This is a great video, and worth watching.

There is a lot of denial going on in Real Estate today because of what has happened to the market place since 1998.

The 1990s were certainly a great time to buy property. We have had nothing but volitility, and exhuberance ever since.

It's just hard to predict how far our government, or governments globally, will go to prop up property prices, and save the banking industry as we know it.

Comments 1 - 1 of 127       Last »     Search these comments

Please register to comment:

api   best comments   contact   latest images   memes   one year ago   users   suggestions   gaiste