“It’s a Good Investment”

Tyler Linsten Investing, Personal Finance

For those considering purchasing a home – or for those who already have – this article by Robert Shiller in the New York Times is a must-read. (Bonus: It’s an easy read and it’s not very long!)

We need to reconsider the foregone conclusion that buying a home is a sound financial investment. Does it bring value in other ways? Absolutely – but when compared to other asset classes, the act of buying a home or land has historically barely kept up with inflation. Compared to stocks and bonds, or even simply GDP, the results are not even close.  Buy for privacy, for security, or for numerous other reasons, but don’t buy it because you believe it has a high expected return on investment.