Current Home Price Appreciation Unsustainable



Comments (4)

  1. G13Man says:

    can not grow vegtables is an apartment

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  2. Unbiased says:

    The article is accurate if you consider ONLY a primary residence. However, rental property brings benefits that go far beyond price appreciation (extra cash flow, tax benefits in the form of depreciation, pay down of mortgage from rent payments, ability to use significant leverage, etc). So rental real estate is by far the best investment (far better than the stock market or bonds). It is very shallow to compare real estate investing to stock investing by using only the owner’s primary residence as a primary residence does not generate income. You guys know better!

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    Hillbilly Reply:

    Correct, if taxes, insurance, mortgage payments and upkeep (after the tenants wreck the house and their deposit doesn’t cover the damage) don’t eat into your bottom line. Now, in their fabulous wisdom, the Feds have decreed that you can only have 4 homes on a fixed rate. Before the Bush Bust it was ten. Of course the current administration has done nothing to alleviate this problem. I doubt if they understand enough about money making basics to open a lemonade stand.

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  3. David says:

    In the old days, a person could save money in the bank, to live off in their old age. Modern financial entrepreneurs, and the banking laws have seen to it that this is unfortunately no longer a very viable proposition. The poor old pensioner is now forced to enter into the money market, shares or otherwise, and pit their skills against the financial vultures of the world. Sometimes making a bit, but often losing half their life’s savings. And then the young and lucky financial entrepreneurs smugly remark that these poor old pensioners made a foolish investment, and it is all their fault.
    If you chose to rent a house in your old age, you could very well be finding yourself not able to cover the rent as you reach the ages of 80+ One just cannot afford to take that risk. The only sensible option is to buy a house you can afford and pay off the mortgage before you retire. If at 80+ you become strapped for cash, you at least have the option of downgrading your home to free up some cash.

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