Will the last moron to pull his head out of his ass please turn out the lights; the real estate party is over. Real-estate is collapsing nationally, dimming the hopes of many idiots that their retirement will be funded by their house.
Where did they get this assumption in the first place? Why did this myth spring up so fervently and so recently?
Simple, it was concocted by the real-estate industry and their willing accomplices in the mortgage industry with any number of cronies like the appraisal industry aiding and abetting their devious scheme.
We were informed by the industry that you couldn’t go wrong in real estate because real estate never goes down. Suckers all around the country swallowed the bait. They’d get rich by buying and selling each others houses, as if Americans were just now owning houses for the first time ever.
What we’ve learned however was that most Americans weren’t using their house for retirement, they were actually using their houses to maintain their lifestyle. They were borrowing against the house to pay for the house. That’s like eating your own leg to stay alive, it might fill you up a couple of times but in the end it isn’t a very good idea.
How many of us have parents and grand parents who have paid off houses? Did their house make them rich? Why would people come to believe that it was different this time? Because the bubble turned into a mania and people threw good sense out of the window.
Historically, a house is nothing more than just a decent store of wealth. The average 3-4% gain reflects the devaluation of the dollar. The house remains constant.
Yes, some people made a killing selling their house to fools who were caught up in the hysteria. A few people will always make money, but most won’t. This time is no exception.
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