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|Subject: Re: Home Ownership not a good investment||Date: 4/29/2014 2:09 PM|
|Author: intercst||Number: 74896 of 76883|
Real estate does not always go up. It goes up, and it goes down. Ask people down in Texas in the 1980's who couldn't sell their houses because there were no jobs there.
When I moved to Houston in 1981, I paid $400/mo for a 1-bedroom apt about a mile from the Galleria Shopping Center. After the real estate bust in 1985, it was probably $200/mo after everyone left town. (I fled to California.) Rents didn't return to their pre-crash high until about 1994
That apt complex is still there today and has been renovated several times in the interim, so it's in good shape. With Houston booming and rents at an all-time high, that same apt is only $675/mo today 33 years later. Engineering salaries in the oil industry have quadrupled over that time.
If you rented in Houston and put put your savings in the stock market over the past 33 years, you likely did very well. You may even have retired at a very early age.
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