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(English) Why Do People Actually Buy a Home?

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22 comentarios
  1. Derek
    Derek Dice:

    Just to play devil’s advocate I had to include this recent article found in the WSJ:

    Buying a home is no way to make money
    Given the cuts looming over Social Security, here’s my advice: Forget the house and save for retirement, said Robert Bridges at The Wall Street Journal.
    posted on July 15, 2011, at 9:29 AM

    Robert Bridges
    The Wall Street Journal

    Homeownership “has never been a particularly stellar investment,” said Robert Bridges, and the sooner young people realize it, the better. Between 1980 and 2010, the median value of a single-family house in California rose from $99,550 to $296,820, or an average of 3.6 percent per year. If the buyer of that median house had opted in 1980 to put the 20 percent down payment of $19,910 in a Dow Jones Industrial Index fund instead, the value of his or her portfolio in 2010 would have been $1.8 million—$1.5 million more than the house. So “why is there such rapt attention to the revival of the homebuilding industry and residential property markets?” Because politicians crave economic recovery, and few activities have such “direct, intense, and immediate positive economic impact as new-home construction.” But that transitory macroeconomic bump doesn’t help young people, who “simply can’t afford” both mortgage payments and contributions to retirement accounts. Houses may be “part of a good life,” but they’re “not always good investments on the road to financial independence.” Given the cuts looming over Social Security, here’s my advice: Forget the house and save for retirement.

  2. Derek
    Derek Dice:

    Thank you for being so diligent in not only providing a response to that article in WSJ, but for providing readers here with that link, via my earlier entry. It’s a great conversation to have! Thank you for this blog as well, it has served me greatly in the past as I’m sure it will in the future!

  3. Chris Swanson
    Chris Swanson Dice:

    So a DJI index fund returned in excess of 25% per year over 30 years? Any financial advisor I’ve ever talked to (or read advice from) has said that about 8% long term is a good return to expect from a balanced portfolio. I don’t know; maybe if you bought Microsoft 30 years ago you’d have that kind of return but hard to believe otherwise.

  4. Hannif Highclass
    Hannif Highclass Dice:

    The bottom line is: Old Age Security. Real estate appreciates – no matter where in the world you live. A fully paid house by many in the developing countries of the world – helps the elder to draw the fund when they are no longer in the work force. Remember not many have the luxury of social benefits that we in the western countries are accustomed to…

  5. Mark
    Mark Dice:

    i am just curious, did anyone actually read the blog. the number one reason by both surveys was living in a good place (safe and stable environment) to raise kids and other family members. The investment aspect wasn’t first in either survey. Further, people looked upon homeownership only in comparison to paying rent. Excellent and informative blog. Thank you

  6. Eli Richardson
    Eli Richardson Dice:

    I really liked when you said purchasing a house it’s a good investment. Recently, my fiance and I have been talking about whether it’s time to find a house or not. We thought we weren’t ready for that kind of commitment, but after reading your piece, we’ll start looking for a home now. Thanks for the information on the perks of buying a house.


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