Rebuttal: Housing is NOT a Lousy Investment
ByPosted To: Community Commentary
It was remarkable to read the headline: Fed Economist: Housing Is a Lousy Investmen t this morning, especially when it was written by a Federal Reserve economist at a time when much of the Fed's efforts are aimed at stabilizing the still flailing housing market. As a mortgage professional who has helped many homeowners use their home equity to accomplish a myriad of financial objectives, I feel the need to rebut the factors Karen Pence claims “make homes a lousy investment”. Today I’ll tackle factors #1 & #2— a rebuttal to factor 3, 4 & 5 to come. PENCE'S FACTOR #1: A house is an indivisible asset. If you own stocks and bonds and suddenly need a little cash, you can sell some of your stocks and bonds but not all. With a home, on the other hand, “you…(read more)