Experts Suggest: Homes Should No Longer Be Viewed as an Investment
In a new report published by MarketWatch on Thursday, experts are cautioning homeowners to no longer view their properties as an investment.
“If you’re going to live in a home for many years, it generally beats renting as a financial proposition (especially since rents have been skyrocketing), but don’t expect the house to produce significant appreciation relative to inflation,” reporter John Coumarianos suggested.
As an example, Coumarianos then went on to explain that a home purchased for $180,000 30 years ago, which may sell for as much as $780,000 today, has only risen in value by a 5% compounded annual gain after taking inflation into account.
Image via flickr/Ken Teegardin