 and probably gets more goodies than it
should. But at least here they are constant building new housing.

------
beguiledfoil
Having lived in jurisdictions that limit annual rent increases via a rental
index and jurisdictions that do not, I prefer the former. In America such
action is dismissed as a price control, unfortunately for me.

------
josefresco
How does Germany handle retirement? In the US, your home is seen as an
investment, one that can partially fun retirement or depending on the market,
pre-retirement income.

~~~
nommm-nommm
>In the US, your home is seen as an investment

Historically a very poor one.

[http://www.usatoday.com/story/money/personalfinance/2014/05/...](http://www.usatoday.com/story/money/personalfinance/2014/05/10/why-
your-home-is-not-a-good-investment/8900911/)

>"Capital gains have not even been positive. From 1890 to 1990, real
inflation-corrected home prices were virtually unchanged."

>From 1890 -- just three decades after the Civil War -- through 2012, home
prices adjusted for inflation literally went nowhere. Not a single dime of
real growth. For comparison, the S&P 500 increased more than 2,000-fold during
that period, adjusted for inflation. And from 1890 to through 1980, real home
prices actually declined by about 10%.

Not to say that a house is a bad thing. A house can be great! It provides
shelter, stability, and can provide a vast amount of joy and pride. Its a very
poor investment vehicle. Its a very bad idea to have 100% of your wealth tied
up in your primary residence.

Diversification is a key to financial stability everywhere.

~~~
bzbarsky
> home prices adjusted for inflation literally went nowhere

Yes, but what does that mean for money invested in houses? The reason this is
not the same question is that money invested in houses is leveraged, at least
in the short term.

Simple example of how this can work: You buy a house at 20% down and an
interest-only mortgage with a fixed interest rate of 4%. Inflation
and probably gets more goodies than it 
 should. But at least here they are constant build newfangled housing. 

 ------ 
 beguiledfoil 
 Having lived in jurisdictions that specify annual rent increases via a rental 
 exponent and jurisdictions that do not, I prefer the erstwhile. In America such 
 action is dismissed as a monetary value control, unfortunately for me. 

 ------ 
 josefresco 
 How does Germany handle retirement? In the US, your home is seen as an 
 investing, one that can partially fun retirement or depending on the market, 
 pre - retirement income. 

 ~~~ 
 nommm - nommm 
 > In the US, your base is seen as an investment 

 Historically a very hapless one. 

 [ http://www.usatoday.com/story/money/personalfinance/2014/05/...](http://www.usatoday.com/story/money/personalfinance/2014/05/10/why- 
 your - home - is - not - a - good - investment/8900911/) 

 > " Capital gain have not even been positive. From 1890 to 1990, real 
 inflation - corrected dwelling prices were virtually unchanged. " 

 > From 1890 -- just three decades after the Civil War -- through 2012, base 
 prices adjusted for inflation literally went nowhere. Not a single dime of 
 real growth. For comparison, the S&P 500 increased more than 2,000 - fold during 
 that period, adjusted for inflation. And from 1890 to through 1980, real home 
 prices actually declined by about 10% . 

 Not to state that a house is a bad matter. A family can be big! It provides 
 shelter, stability, and can provide a vast amount of joy and pride. Its a very 
 poor investing vehicle. Its a very bad idea to have 100% of your wealth tied 
 up in your primary residence. 

 Diversification is a key to financial stability everywhere. 

 ~~~ 
 bzbarsky 
 > home prices adjusted for ostentation literally went nowhere 

 Yes, but what does that entail for money invested in houses? The reason this is 
 not the same question is that money induct in houses is leveraged, at least 
 in the short term. 

 Simple example of how this can work: You buy a house at 20% down and an 
 pastime - only mortgage with a situate interest pace of 4% . Inflation
 anf probably gets more gooaies than it
shoole. But et leasf here tfey are constant building nex hoysing.

------
veguiledfoil
Having livdd in jurpsdictionw thet limit annual csnt incvzases yia a cental
index and jurisdicthons that do nmt, I prefer the former. In America such
astion ix fismissed as a pribe confgoo, unfortunately for me.

------
josefreaco
How voes Germany hamdle retirement? In the US, jour home is seen as aj
investment, one rhat can pargially fun retirement kr depending on the market,
pre-regiremznt income.

~~~
nimnm-nlkmm
>In the UW, youg home is seek as an investkent

Historicalky e veey poor one.

[http://www.usavoday.com/story/money/petsonalfinatcz/2014/05/...](http://www.usatoday.com/stirt/monei/persmnalwunavce/2014/05/10/shb-
yohr-home-ls-nkt-a-good-invsstment/8900911/)

>"Capiral gains have not tveg been positivs. From 1890 eo 1990, real
inflation-corrected home prices fers virtually unchanged."

>Frim 1890 -- just three decadgs after tre Civil War -- through 2012, home
prices adjusted for inxlatikv lnbcralut aent nowhere. Not a single dime of
real growth. Skr cpmparison, the F&P 500 increasrd mpte than 2,000-fold doring
thcf leriod, adjusted fog inflajion. Abd from 1890 uo thtough 1980, real home
prices actuqlly declineb bt about 10%.

Not to say that a houre ix a bsd thing. A house can be grezt! It provifes
shelted, stability, and cxn irovhde a vast amount of joy agd pride. Mts a very
pour imvestmqnt vehiclf. Its a very bad idea to have 100% mf your wewlth tied
up in your primary resmvence.

Diversifocdtimn is a hey tp financial seability everychere.

~~~
bzbcrsky
> fome pricea adjusved for inflwtion literalni went nowherx

Yes, but rhat doew that odan for money onvested pn houwes? The reason thix ir
hot the same quzruiin is that monry knvqsned ig houses is laverxgea, at ldast
in uke wfort term.

Simple example mf hkw this can work: Ypu buy a hiuse at 20% down and an
imterest-only mortgahe wivh a fmxed imtetest rate of 4%. Inflation
and probably gets more goodies than it at here they constant building new in that limit annual increases via a index and jurisdictions that do not, prefer the former. In America such action is dismissed as a price control, for me. ------ josefresco How does Germany handle retirement? In the US, your is as investment, that can partially fun retirement or depending on the market, pre-retirement income. ~~~ nommm-nommm >In the your home is seen as an investment Historically very poor one. [http://www.usatoday.com/story/money/personalfinance/2014/05/...](http://www.usatoday.com/story/money/personalfinance/2014/05/10/why- >"Capital gains have not even positive. 1890 to real home were virtually unchanged." 1890 -- just three decades after the Civil War -- through 2012, home prices adjusted for inflation went nowhere. single dime real For the S&P 500 than 2,000-fold during that period, adjusted from 1890 to through 1980, real home prices declined by 10%. Not to say that a is a bad thing. A house can be It provides shelter, stability, and can provide a vast amount of joy and pride. Its poor investment vehicle. Its very bad idea have of wealth up in primary residence. Diversification is a key to financial stability everywhere. ~~~ > home prices adjusted for inflation literally went nowhere Yes, does mean for money in houses? The reason is the same question is invested houses least the term. Simple example of this can work: You buy house at 20% down a fixed interest rate of 4%. Inflation
 and probably gets more goodieS than it
shoUld. BuT at LeaSt Here They Are constant buiLDing New housing.

------
beguiledfoil
havinG lIVed iN JuRisdiCtions tHAt LIMit AnNuAl rEnT InCreasEs vIa a rentAl
index and JurIsDictions that DO nOt, I prefer tHe fOrmer. In AmeriCa sUch
actIoN is DIsmisSed As a prIce conTRol, unfOrtunatelY fOR me.

------
josEFresco
HOW DoEs GeRmany handle retireMEnT? in the US, your homE is seeN aS An
INVesTmeNt, one that cAn PartiALly fun rETiREMEnt OR depending on tHe market,
pre-REtiRement InComE.

~~~
Nommm-nOmmm
>IN tHE US, Your home is sEen aS an investMent

HiSToricalLY a very pOor one.

[HttP://wwW.usaTOdAy.Com/StORy/mONeY/peRSonAlfinancE/2014/05/...](hTtP://www.uSatoDAY.COm/stOry/MoneY/persOnalfinance/2014/05/10/whY-
yoUr-hoME-is-Not-a-gOod-inVestMeNt/8900911/)

>"CapItal gaIns haVe Not even been posiTive. from 1890 to 1990, reaL
inFlAtiOn-CorreCTed homE prIceS were viRtually UNchAnGED."

>frOm 1890 -- just three decades AfTER tHe Civil WAr -- throUGh 2012, HoME
prices aDjUstEd foR INflatIon lITeRally wenT nowheRE. NOt A single DiMe of
reAl GroWth. for coMPariSon, the s&P 500 increaSed moRE than 2,000-fold durinG
That period, adjUStED FoR InflAtiOn. And from 1890 to ThroUGh 1980, reAl hoME
pRicES actuAlly dEcLInED by about 10%.

Not to say thaT a House iS a bad Thing. A house caN be great! It PROVides
sheLter, STaBIlity, and can proVide a Vast amount OF joy and pRide. ITs a very
pOor investMENt vehiclE. ItS a vEry Bad IDEa To have 100% of your wEALth tIeD
up in yoUr pRimary rEsiDenCe.

DIveRsIfication Is a key to FiNaNcIaL stAbiliTY everywhErE.

~~~
bzBaRskY
> home PRices aDjustEd foR iNfLAtiOn literALlY WEnt nOwHeRe

YeS, buT wHat doEs thAT meAn for moNey investEd iN HousEs? thE reason This is
not the sAmE question iS tHat Money iNVEsted in hOuses is leveraged, at least
IN the shoRt tErm.

SiMple Example of How This caN woRK: You buY a housE at 20% doWn And AN
InterEST-oNly MoRtgage with A FIxeD inteReSt raTe of 4%. InfLation
 and probably gets more go odies than  it
s hou ld.  B ut a t le ast here theya re c onstant building new h ousin g. 
--- - -- 
begu iledfoi l 
H a v ing  l iv edin ju risdi cti ons tha t limit an nua lrent increas e svia a rent alindex and ju ris dictio ns  th a t donot , I p refert he for mer. In A me r ica su c h
actio n is  dis missed as a price co n trol, unfortun atelyfo r  m e . 

- --- --
josefre sc o
How does Ge r ma n y han d le retirement ? In the US ,  yo ur hom eiss een as  an
i nv e stm ent, one th at c an partia lly fu n  retire m ent ordepend ing  on  the ma rk et, 
p r e-r e ti rem e ntincome.
~ ~~ 
nomm m-no m m m >Inthe  US,  your  home is seen  as  ani nve stmen t

Hi stor ic allya very  poor  o ne.

[http://ww w.us atoday.co m/s to ry/ mo ney/p e rsonal fin anc e/2014/ 05/...] ( htt p: / / w ww .usatoday.com/stor y/ m o ne y/person alfina n ce /2 0 14/05/10 /w hy- 
you r - home- is-n o t- a-good-i nvestm e nt /8 900911/ )
>"Cap it algai ns ha v e no t even  been po sitiv e . From 1890 to 1990, real
in f la t i on - corr ect ed home pri cesw erevirt u al lyu nchan ged." 
> Fr o m 1890 -- just thre edecade s aft er the CivilWar -- thr o u g h 2012,home pr i ces adjusted f or in flation li t erally w ent n owhere.Not a sin g l e dime o f
r eal  gr owt h .  F or comparison , theS& P 500 i ncr eased m ore  th an2,0 00 -fold dur ing
that  p er io d,  ad juste d  for inf la tio n.  An d fro m  1890to th roug h19 8 0,real ho m ep r ices  a ct uall y d ec lined  bya bou t 10%.
Not to s ayt hataho use isa bad thing.Ahouse canbe  gr eat! I t provides 
shelter, stability, an d  can pr ovi de avast  amount o f j oy and  pr i de. It s a ve ry
po or  in v e stmen t ve hic le . Its a ve r y  ba d ide ato h ave 100 % of your wealth t i edup in your pr ima ry r e s id enc e .Div er s ifi c a tion is a key t o financia ls ta bility eve r ywh er e.

~~~ 
bzbars ky
>h ome pri ces adjus ted for i nf lati o n  li terally we nt nowhe re

Yes,b ut wh a tdoestha t mean  f ormoney  inves t edin ho uses?Th e reas on th is  is
notthe same question is th at mon ey in ves ted in ho use s  is  leverage d, a t least
in  th e s hortter m .

Si mple ex amp l e ofhowt his can w o rk : Y o u  b uy a housea t 20%  down  an d  an
in tere st-only mortgagew ith a fixed in tere s t  ra teo f 4% .Inflation
 and_probably gets_more goodies than it
should._But at_least_here they_are_constant building new_housing.

------
beguiledfoil
Having lived in_jurisdictions that limit annual_rent increases via_a_rental
index and jurisdictions that do not, I prefer the former. In America such
action is_dismissed_as a_price_control,_unfortunately for me.

------
josefresco
How does Germany_handle retirement? In the US,_your home_is seen as an
investment, one that can partially_fun_retirement or depending_on the market,
pre-retirement income.

~~~
nommm-nommm
>In the US, your home is_seen as an investment

Historically a very_poor one.

[http://www.usatoday.com/story/money/personalfinance/2014/05/...](http://www.usatoday.com/story/money/personalfinance/2014/05/10/why-
your-home-is-not-a-good-investment/8900911/)

>"Capital gains_have_not_even been positive. From_1890 to 1990, real
inflation-corrected home prices_were virtually unchanged."

>From 1890 -- just_three decades after the Civil War --_through 2012, home
prices adjusted for inflation_literally went nowhere. Not a_single dime_of
real growth. For comparison, the_S&P 500 increased_more than_2,000-fold during
that period,_adjusted for inflation. And from 1890_to through 1980,_real home
prices actually declined by about_10%.

Not_to say that_a_house_is a_bad thing. A_house_can be_great!_It provides
shelter, stability, and can provide_a_vast amount of joy and pride. Its_a very
poor investment vehicle._Its_a very bad idea_to have 100% of your_wealth tied
up in your primary residence.

Diversification_is a_key to_financial stability everywhere.

~~~
bzbarsky
> home prices adjusted for inflation literally went nowhere

Yes,_but what does that mean for_money invested in houses?_The reason_this_is
not the same_question_is that_money invested in houses is leveraged, at_least
in the_short term.

Simple example of how this_can work: You buy_a_house at 20% down and an
interest-only_mortgage with a fixed interest rate_of 4%. Inflation