Jason Hartman discusses the true price of a house based on payments opposed to the selling price. He talks about the average inflation rate over the last 3 decades and how important it is to factor interest rates and inflation into the value of a house.
The mainstream media will tell you the price of houses selling and say, "We're in a bubble and you should buy as many as you can. The market is going to crash!"
We need to remember that real estate is the most debt-friendly asset and can be refinanced very easily.
People buy based on a payment, not a price, and that is an important factor to consider. The price of a house can increase 4 times while the mortgage payment only doubles. A house today (converted to 1989 dollars) cost about the same as a house in 1989.
Website:
The podcast Jason Hartman's Quick Start Podcast is embedded on this page from an open RSS feed. All files, descriptions, artwork and other metadata from the RSS-feed is the property of the podcast owner and not affiliated with or validated by Podplay.