New York Times columnist Jeff Brown discusses the investment merits of houses versus stocks. He makes a lot of good points that clients really need to think about. Price appreciation in homes is not nearly as high as in stocks over time, homes are less liquid, and well, homes are homes. Even the help from leverage is not as great as generally believed. The only real advantage houses have is psychological–the price isn’t quoted daily.
Maybe investor behavior in the stock market would be better if prices were only quoted once a year.
