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

To: patron_anejo_por_favor who wrote (2019)	3/3/2002 4:44:04 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

Patron...not to mention his premise that people are "afraid" of mortgages because their grandparents or parents told them to be. My parents had a mortgage. My grandfather never gave me a bit of investment advice. Where did Edelman come up with the ancestral fear thing???? What a hoot.

To: patron_anejo_por_favor who wrote (2019)	3/3/2002 5:02:20 PM
From: Oblomov	Read Replies (1) \| Respond to of 306849

Patron, I agree with your comments wholeheartedly. Money is not the same as the nominal value of an asset. Owning a house outright IS NOT like stashing money in a mattress (the writer's intent to disparage notwithstanding, an entirely reasonable place to put money in the US in the 1930s or in modern-day Japan). It IS like owning a car or other property without any debt encumbering it - it is only in the absence of encumbrance that one may have full enjoyment of the property. In shopping for a house recently, I'm baffled as to why so many RE agents emphasize a housing purchase as an "investment". Why should every allocation of money need to be an "investment"? What is the ROI on a house that is your primary residence? The "investment" is cash-flow negative for 10-30 years. A CEO making such "investments" would not be around very long. Of course, given the right circumstances, buying a house can be a smart financial decision, as well as beneficial to the emotional well-being of one's self and family. However, I make a distinction between the outcomes that I expect from such decisions and the outcomes that I expect from my investments.