There is a great article about how the true cost of buying a home in the USA right now. It also goes into how people intrinsically don’t understand compound inflation. ($5 today has the same value as$5 , ten years ago….right?)
The part that caught my attention was the inflation adjusted home prices graph.
The pressure that was put on people to buy into the idea that home ownership is a financial smart step has started to wane for the past few years, yet it is making a comeback. I think the Boomers are getting nervous about how to ditch their homes…
Next time someone tells you how they struck it rich by buying a home in the past 10 years, ask them about how much (inflation adjusted mind you) they paid in taxes, maintenance, insurance, fees and upgrades to their home…all on top of the interest and principle. I bet you find that they were lucky to break even at best.
Link to the article here.
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