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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Oblomov who wrote (352)	8/28/2001 10:57:37 AM
From: chomolungma	Read Replies (2) \| Respond to of 306849

Yes, real estate agent hype is often taken as fact. In reality, residential real-estate is a “non-productive asset.” It does not produce anything and therefore does not generate any real economic return. Any investment gains from a home are due to inflation, leverage and the shortage premium in certain areas. The notion that homes can appreciate faster than the rate of inflation forever are ill-founded. It’s more likely that after property taxes, maintenance and improvement that residential real-estate actually has a negative return.

To: Oblomov who wrote (352)	8/28/2001 10:57:43 AM
From: TheStockFairy	Read Replies (1) \| Respond to of 306849

AMEN! If I did an even swap out rent / mortgage + Interest + taxes, I would have to be living in a real dump of a house around here. I also like having the 20% down in cash in case of an even more severe downturn in my sector (telecom).

To: Oblomov who wrote (352)	8/29/2001 2:05:46 AM
From: Berney	Respond to of 306849

Congrats for making the cool posts!!! It is not an easy decision. Yet, it is an economic decision. As a tax dude, there are pluses and minuses. As in all of these choices, folks tend to focus on the pluses and ignore the minuses. Berney