Excerpt from a speech from Profesor Karl “Chip” Case, housing economist at Wellesley College and co-founder of the Case-Shiller Pice Index.
Your home will give you the same yield as when you first bought it, it’s a place to live. It’s like a stock with a constant real dividend. You can make this argument, if you buy a stock and the company goes down the dividend is the first thing to go. With your home, the divided is that you get to live there rent-free. You’re also locked into housing later, when house prices goes up, your home goes up so your protected; your also protected when house prices goes down, because so are the ones you inspire to buy in the future go down. Housing is a terrific investment.
So what are your thoughts? Do you agree with Profesor Karl Case that housing is a “terrific investment”?