>They'll be looking for someone to blame when they're 40 and jaded.
No need to wait. I'm 23 and I already feel jaded.
I can't comprehend why anyone would want to treat their primary residence as an investment. My mom bought a tiny apartment in an eastern European country 30 years ago for almost nothing that has appreciated and is now worth $35000. The problem? She wants to move and an actually desirable apartment costs twice as much. Two times almost nothing is still almost nothing. Two times $35000 is $70000 which is something she can't afford.
House appreciation ends up being a a net loss because it kills any potential exit strategy.
Want to cash out? You will have to sell your house and then rent for obscene prices. Want to upgrade? Better houses appreciate faster than your low end house, so you have to cough up more money. Want to move to a different location that costs the same? Your taxes have appreciated too.
So the only way this investment strategy can pay off is if you want to move away from the place which is obviously what doesn't happen because people buy homes to stay there, not to move away in 30 years after their homes have appreciated.
No need to wait. I'm 23 and I already feel jaded.
I can't comprehend why anyone would want to treat their primary residence as an investment. My mom bought a tiny apartment in an eastern European country 30 years ago for almost nothing that has appreciated and is now worth $35000. The problem? She wants to move and an actually desirable apartment costs twice as much. Two times almost nothing is still almost nothing. Two times $35000 is $70000 which is something she can't afford.
House appreciation ends up being a a net loss because it kills any potential exit strategy. Want to cash out? You will have to sell your house and then rent for obscene prices. Want to upgrade? Better houses appreciate faster than your low end house, so you have to cough up more money. Want to move to a different location that costs the same? Your taxes have appreciated too.
So the only way this investment strategy can pay off is if you want to move away from the place which is obviously what doesn't happen because people buy homes to stay there, not to move away in 30 years after their homes have appreciated.