Is real estate “The Great Lie?”
Writing as author of “Diary of a Financier,” a blogger on The Buttonwood Tree provocatively argues that costs beyond mortgage payments suggest that real estate and housing are “not terrific investments.” Says the post:
Most suggestions otherwise are a huge lie, perhaps The Great Lie. The Lie is perpetrated most in the commercialization of the “American Dream”: a white, picket fence for every man, woman, and family. Non-income-producing, residential real estate is broadly a money pit. For long-term holding periods (5-20 years), the value of this real estate is severely eroded by its cost of carry, including Taxes + Insurance + Maintenance.
Although I have often expressed my own concerns about The American Dream, I have to wonder about (more…)