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Health & Fitness

Home Ownership Will Not Be a Good Investment in Our Lifetime

"Housing is Dead" Bubble is still bursting says Harry Dent, 3/31/2011 Housing Market "Sucks" & takes years to correct, Yahoo Finance 3/24/2011

Housing prices continue to decline.  In some areas they continue to decline at a dramatic pace.  The housing bubble is still bursting. You need to know this for a number of reasons.  First, people should never pay off an asset that is depreciating in value.  They should try to keep a mortgage forever.  Houses are non-liquid assets and they are a depreciating asset.  You will pay for your mortgage with dollars that are worth fifty cents ten years from now.  Your only chance to defeat inflation and volatility is to be cash rich and have strategies that prevent losses and participate in increases.

The number one secret to have a chance to beat inflation is "Never Lose Any Money." That will become increasingly difficult as volatility increases and occurs more rapidly. I know we hate change, however, let me say it again, home ownership is not a good investment.  I did not say you shouldn't own a home.  I said it is not a good investment and it certainly is not a methodology for saving for retirement.  (Courtesy of VanMueller.)

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