How housing became the world’s biggest asset class

Re:How housing became the world’s biggest asset class by usaar333 on Wednesday January 22, 2020 @03:25PM (#22121627)

If I'm planning to live in a home forever, the short term price fluctuations of it are hardly relevant - it does nothing but inform me about the past (I got a great deal or bad deal when I bought.. in hindsight). They are relevant to a renter.

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Re:How housing became the world’s biggest asset class by dpc_pw on Wednesday January 22, 2020 @03:39PM (#22121762)

"Short term fluctuations" can last decades. https://fred.stlouisfed.org/series/QJPN628BIS

And "forever" often turns into couple of years because of health problems, job opportunities, personal events, and so and so.

The only reason why houses cost as much as they do is historically low mortgage rates https://www.macrotrends.net/2604/30-year-fixed-mortgage-rate... . And if this (mean reverting) trend is to revert any time soon...

I don't know what actually is going to happen. And maybe FED will eventually decide to hyperinflate the crashing credit bubble which would be great for people with big mortgages. But people that live in oblivion thinking that's the safest investment ever, are completely clueless. But maybe they'll be lucky. :)

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Re:How housing became the world’s biggest asset class by imtringued on Thursday January 23, 2020 @07:26AM (#22126953)

Unfortunately I cannot seem to find a much better place than where I currently am. I have tried. Most of the super fancy locations have an awful local purchasing power that can't be offset with better international purchasing power. Sure you might go there for 6 years and save some money but then you will also leave again.

Meanwhile here I am in my little city with barely more than 100k people spending less than 1/3 of my income per month with the help of a stable government job. I could get more if I wanted simply by working at the largest employer in town. So why move?

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