Re:How housing became the world’s biggest asset class
by chii on Wednesday January 22, 2020 @10:51PM
(#22124669)
you forget the capital costs (aka, opportunity cost) in your home.
If you paid cash for a house, you're losing the risk free rate of a treasury bond (or the rental rate). That's a cost most people don't count, but only because they dont know how to do financial valuations properly.
If you paid cash for a house, you're losing the risk free rate of a treasury bond (or the rental rate). That's a cost most people don't count, but only because they dont know how to do financial valuations properly.