Re:Housing Can’t Be Both Affordable and a Good Investment (2...
by hinkley on Thursday May 02, 2019 @01:51PM
(#19810516)
It also encourages people to buy the biggest house they can afford instead of the smallest one they can be comfortable in.
Very few people buy the nicest car or the best TV, because we know those don't have a return. But being bad at math, we can't seem to figure out that we only see 30% of every dollar put into the house (taxes, mortgage, upkeep, improvements) back and we conveniently forget about inflation.
Yeah, if your house doubled in value in 25 years that means you kept pace with inflation. You could have done better with CDs.
Very few people buy the nicest car or the best TV, because we know those don't have a return. But being bad at math, we can't seem to figure out that we only see 30% of every dollar put into the house (taxes, mortgage, upkeep, improvements) back and we conveniently forget about inflation.
Yeah, if your house doubled in value in 25 years that means you kept pace with inflation. You could have done better with CDs.