Join Date: Mar 2008
Location: East Florida
Bikes: '66 Raleigh Superbe, 80 Nishiki Maxima, 07 Gary Fisher Utopia, 09 Surly LHT
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He's so right, as usual. I've been looking at investment real estate off and on for 20 years or so. The last couple years, for the first time, you can buy a good home in a decent neighborhood, finance the whole thing (if you could get a 100% mortgage, in theory), and start banking money right away. You don't need appreciation or inflation to get a return on your money, though you're pretty likely to get them in the long run anyway.
It's a real no-brainer investment right now. The only stumbling blocks are tight or poor credit, and people's fears. Many people who got burned trying to 'flip' houses during the bubble can not be convinced to buy now, no matter how cheap the prices. Add in give-away interest rates, near zero savings returns, and questionable prospects for stocks (manufacturing getting beat down by China, and retail by the internet), and people should be lining up to buy houses.
Managing homes is a different animal. If you don't want to be in that business, fine. But, if you are planning to stay in an area for at least a few years, then buying your own home should easily beat renting for now.
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