jnardiello: "... i realize that if you buy a really crappy built house, my arguments might not be valid."
Or if the neighborhood goes into recession for decades after your purchase.
There's a study floating around claiming that homebuyers flock to a region during a period of growth, buy homes at high prices and, when the local economy slows, are stuck forever.
jnardiello: "But where i live, houses are built to last centuries and they are by far the best way to responsibly spend your money."
- Centuries? Then you're not in the U.S. (nothing wrong with that but just want to clarify).
- Stocks do better than real estate historically.
-Building a home that lasts centuries is probably suboptimal. Who knows what the future holds? What will the local economy will be like in 10 years? What better, cheaper (e.g., energy-saving) building techniques will be developed in the next decade? We should all live in solar-powered eco-yurts!8-))
Confirmed, i'm in Italy (which btw was hit VERY hard by the economical crisis, YET we - as country - had a much better time than others PIGS countries mostly thanks for the fact the while the gov was kind of bankrupted, almost all the families owned a house and had consistent savings.
> - Stocks do better than real estate historically.
Stocks are a bet. Slightly more scientific than going to casino, but still a bet. Ask lehman brothers investors, they might have an opinion on this.
Or if the neighborhood goes into recession for decades after your purchase.
There's a study floating around claiming that homebuyers flock to a region during a period of growth, buy homes at high prices and, when the local economy slows, are stuck forever.
jnardiello: "But where i live, houses are built to last centuries and they are by far the best way to responsibly spend your money."
- Centuries? Then you're not in the U.S. (nothing wrong with that but just want to clarify).
- Stocks do better than real estate historically.
-Building a home that lasts centuries is probably suboptimal. Who knows what the future holds? What will the local economy will be like in 10 years? What better, cheaper (e.g., energy-saving) building techniques will be developed in the next decade? We should all live in solar-powered eco-yurts!8-))
https://www.google.com/search?&q=eco-yurt
"A Home Is a Lousy Investment": http://online.wsj.com/news/articles/SB1000142405270230425930...
"Why owning a home is bad for you": http://www2.macleans.ca/2013/09/29/the-housing-trap/
"Is Home Ownership Overrated?" http://www.dailyfinance.com/2011/05/03/is-home-ownership-ove...