Saturday, January 31, 2009

Still the Same Houses

In a recent quarterly newsletter investment guru Jeremy Grantham points out:
At three times the price, they were obviously still the very same houses. How could we kid ourselves that we were suddenly rich and didn’t need to save for our pensions when we were sitting in the very same buildings we bought in 1974?
I found this comment oddly reassuring. If you bought your home because you intended to live in it, and likely for quite a long time (as I did, back in 2000), then what "the market" came to believe your home was worth during this unfortunate housing bubble was somewhat irrelevant. Hopefully we are going to return to a time when having a home was something worth working and saving for and investing in over a long term, and value of owning a home wasn't just about money.


Post a Comment

<< Home