link here to article
The graph in the this article shows nominal appreciation in housing prices and price appreciation corrected for inflation (real price). A lot of people have sold a home at a profit or they have heard of people holding a home for a long time selling it for twice what they paid for it. The nominal price appreciation line shows that effect. On the other hand, the real price appreciation line is flat except for certain periods of boom or bust. That means that purchasing a home has not been a good investment. It is, however, a forced way to save money. Part of every mortgage payment increases one's equity in the home which is an asset. If one pays cash for the home it is then simple a way to store money for future use.
No comments:
Post a Comment