Monday, March 9, 2009

Why Renting Beats Buying A House

Did I write this while I was asleep? It sounds exactly like something I would say :-)

Basic premise: Home prices never change!
When accounted for inflation and expenses the (financial) value of owning a home is a wash. So treating it like an investment is foolish. For hundreds of years home prices have been a constant-function of the cost of owning them, no more, no less. And the housing bubble of the past 8 years was totally predictable, and has yet to finish deflating.

The author also makes note of this Atlantic article which envisions less future-need for home ownership,

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