Inquiring minds are looking at a fascinating article making strong proclamations about real estate not being a good investment anymore:
The fallout of the housing bubble had one clear result: people will no longer blindly assume that housing will always be a good investment. Indeed, we now know it can be a terrible one. Many Americans, however, relied on their home as their central source of wealth due in part to the false promise of appreciation. Without being able to use their homes as an investment going forward, where will Americans turn? They must instead utilize the only other options available: stocks, bonds, small business, or savings accounts. This is a good change.
It certainly is “a good change”. This means we are getting closer to being able to purchase property. Afterall, you don’t make money going with the flow. You make money going against the flow! Look no further than this piece of drivle:
The New York Times has an article today, explaining how housing is fading as a strong option for investment:
Dean Baker, co-director of the Center for Economic and Policy Research, estimates that it will take 20 years to recoup the $6 trillion of housing wealth that has been lost since 2005. After adjusting for inflation, values will never catch up.
“People shouldn’t look at a home as a way to make money because it won’t,” Mr. Baker said.
“People shouldn’t look at a home as a way to make money because it won’t”???
This is just as heinous as telling people that “everyone and anyone can make money in real estate”. How do writers get away such absolute statements? The fact is that the worse the real estate market gets, the better the investment it becomes.
Another way of stating this is…”buy low, sell high”.
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