Re:Housing can’t both be a good investment and be affordable
by dantheman on Saturday November 03, 2018 @01:55AM
(#18368944)
Many things are created with out them being 'investments.' The builder just needs to be able to sell the home for more than the cost of labor, material, and land. The owner buys it as a place to live and not as an investment.
Much like a car - many things are expensive and not expected to go up in value.
Re:Housing can’t both be a good investment and be affordable
by dragonwriter on Saturday November 03, 2018 @03:12AM
(#18369115)
> Many things are created with out them being 'investments.' The builder just needs to be able to sell the home for more than the cost of labor, material, and land.
Spending money on something in th expectation of being able to resell it later for greater than the cost is, exactly, an investment.
Re:Housing can’t both be a good investment and be affordable
by dllthomas on Saturday November 03, 2018 @02:34PM
(#18371737)
> > If you don't own a home, you are effectively short the housing market.
> No, the same way that you aren't short on Tesla if you merely don't own any Tesla shares.
I'm not required to produce Tesla shares every month for the rest of my life. It's not precisely that I need to own "one home" to be "neutral housing", but I need a claim on enough housing for myself (and those I'm responsible for) that I don't have to keep paying market rate for.
No, the same way that you aren't short on Tesla if you merely don't own any Tesla shares.
> If you own one home you are neutral
Long, actually.
> you can't sell it to make a profit because you always need one roof over your head.
Yes, you can; you may prefer to have a home, but people do in fact live without them, and, further unless you own the most minimal home allowed by habitability laws in the most inexpensive neighborhood, you can always downgrade while still having a roof over your head.
> If you own more than one house, you are a landlord/investor
That's no more true that it is of “if you own more than the least expensive house possible”; it is quite possible to own multiple homes only for personal use value, viewing them neither as investment for resale or things to rent out.
> It would be better for everyone if housing was not an investment
If it wasn't, how would development happen? It only happens because housing is an investment for the first owners, the one building it.