Quote:
Originally Posted by Porsche-O-Phile
Are you saying real estate will out perform inflation NOW?
You're kidding, right?
Historically real estate approximates inflation so effectively it's just a savings account that keeps your money socked away at current value. Today, it's a guaranteed loss. Five years ago it was a good bet.
It will take a long time for real estate to be a good inflationary hedge again, unless we get runaway/hyper inflation - which is a possibility I guess...
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You forget -- the govt. lets you DE-preciate real estate -- even tho it is really APPreciating. Add that in, and for most all, yes, real estate an beat inflation over the long term. Obviously, do not buy a hot market.
Next year might be good for Cal & Fl tho.