
Homeownership doesn't build wealth, study finds - kimsk112
https://www.cnbc.com/2017/11/16/homeownership-doesnt-build-wealth-study-finds.html
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chmaynard
This is a classic example of the pseudo-journalism that dominates our
mainstream mass media. The only real news in this article is that a study took
place and came to some conclusions. Missing are details such as the study
methodology, a citation, peer-review status of the study, hidden assumptions
and biases, qualifications of the researchers, and so on.

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phnofive
The first line of the article runs contrary to the headline:

> Owning a home may help you save money, but it won't help you make money.

Even this point I disagree with. Is it not cheaper to own and maintain rather
than rent, in the long term?

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mixmastamyk
Not in such a warped market.

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voidmain
A useful way of looking at this, orthogonal to the issue of forced savings, is
that you need a roof over your head, so you are born _short_ housing. Buying a
modest home covers this short and so is typically a risk mitigating thing to
do. Owning more house than you really need puts you long housing. Remaining
short housing and investing in the stock market may have a positive expected
return, but puts you at risk of being priced out of your local housing market
if that happens to outperform stocks for a while.

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hactually
Source: [http://aresjournals.org/toc/jhor/26/1?code=ares-
site](http://aresjournals.org/toc/jhor/26/1?code=ares-site)

A more citation ready article is here
[http://www.fau.edu/newsdesk/articles/homeowners-cant-
count-o...](http://www.fau.edu/newsdesk/articles/homeowners-cant-count-on-
property-appreciation-for-wealth.php) but overall owning and living in your
own home isn't a vehicle for wealth.

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phnofive
Thanks for providing the source; this comment clarifies the headline:

> “When you assume that those monies are reinvested at a rate of return,
> renting, on average, wins in terms of wealth creation,” Johnson said. “Of
> course, many renters will not reinvest those monies and will instead use
> them for consumer goods, which is the least desirable option in terms of
> building wealth.”

Mythical, prudently invested renters may beat RE appreciation. You can’t sleep
in a vanguard account, but I suppose you can’t buy bread with equity either.

