No. of Recommendations: 4
With the appreciation rates of homes in South Florida, it makes you want to put money into real estate, it's almost a no-brainer at this point. I know people that are taking home equity loans so that they can purchase additional property.

Past history is no guarentee of future results...

Heard that before?? Maybe you heard this before.. say around 1999...

"With the way the stock market is appreciating, it makes you want to put lots of money into the stock market, it's almost a no-brainer at this point. I know people that are taking home equity loans so that they can purchase additional stocks"

Real estate is in a bubble... Now, is at stocks circa 1997 bubble (where you could still make some money over the next couple of years) or is at stocks circa March 2000 bubble (where you're about to lose your shirt)?

Use logic. Can prices of homes go up 10% a year EVERY year FOREVER? When wages are increasing at 3%, and interest rates are going up (meaning mortgages will be more expensive in the near future)?

Just because an asset class has increased majorly in value for the last four years, doesn't mean it will continue to do so. In fact, it's most likely NOT to continue...

No asset class can grow at above normal rates forever.

With NO exceptions, all bubbles and markets come back to trend.

Print the post  

Announcements

The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.