OT
True, so very true. It's amazing more people can't come to grips with this. I can get into a detailed discussion with someone about why a home is not an investment pointing out all of the reasons, but can rarely convince anyone. I think our society has been classically conditioned into believing this. It's hard for many to "think outside the box".
Chic,
I disagree with you on this one. Both from a micro as a macro economic view.
First the micro. I see a lot of people around me, and I don't count you in, who are unable to save, because they always have new desires, and money is gone before it is earned. Through a mortgage, they save. When they are becoming old and need more care, they still have the house and can use the profits. For a lot of people, it's the best retirement plan. But I agree with you, if you look at it, purely as an investment, I should not do it.
Then the macro. For a healthy society and economy, it is important money is not to much concentrated in the hands of a small group. Through the possession of houses, equity is more spread. See the opposite. If everybody had the attitude of renting, some very large companies would control an enormous amount of value. Forcing us all in houses, the most economic to build and maintain.
Ever been to eastern Europe?
Bert |
