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Old 01-28-2012, 05:36 AM
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Bob Shiftright Bob Shiftright is offline
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Location: PRNJ
 
Join Date: Feb 2006
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Quote:
Originally Posted by palermo22 View Post
Like any financial chart - snapshots give misleading information. While it's true that home prices have been on the decline for the past five years - if you spread that picture out to the past ten or twenty years - then the negative 29% pales in comparison to the gains that were made. A mortgage - as long as you are not over your head - is a worthwhile liability because it's attached to an asset that will continue to appreciate (most likely with inflation) over the long term (just as the stock market will - again, long term).
My first house was built in 1928 and from what I remember from reading the prices it sold for in the deed, it took years if not decades for prices to recover after that crash. Following the most recent recent bubble and crash, houses have sold for $1 in urban areas, and might be overpriced at that. I have my doubts that prices in Detroit and Camden NJ will ever return to pre-crash bubble price levels.

After Japan's real estate bubble burst, prices fell and have stayed flat for years.



I'd be reluctant to invest in real estate unless it generated income. Then I could see taking on debt -- other reasons might be a professional education or purchasing a business.

We own a house (like most people) and are looking to buy a larger house, but I don't consider my house any more of an investment than my cars are. At best it's a speculation.

I like having the space for my tomato plants and cars and the freedom to drill holes in my walls without worrying about a landlord, but my house is not an investment.
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