Real Estate, Truman Administration, Robert Schiller discussed on Optimal Finance Daily: Best Of Personal Finance | Minimalism | Investing Money - 342: Should I Invest in Real Estate - Pt 1 by Ramit Sethi of IWillTeachYouToBeRich (Like Manage Your Damn Money: The Podcast)

Automatic TRANSCRIPT

What's an invisible script for meat well invisible scripts or those guiding believes that are so deeply embedded in our daytoday lives that we don't even realize they're they're we've all heard them before you need to make sure you get a college degree after you graduate need to get married after you get married you need to have kids and the compulsion many have for real estate investing is one of those scripts despite the fact that it's one of the biggest life altering decisions you can make in fact i received emails every day from people saying i have a horrible financial problem please help and thirty percent of the time it's directly related to their mortgages in chapter nine of my ebook i'm hypercritical of people buying real estate because they think it's a good investment or because they think they're throwing money away on rent those myths and many others are just that myths and they've been so detrimental to many people's financial situations that i feel like i need to dispel some of them today here are the four myths of real estate you need to know before you even think about buying a house real estate myth number one purchasing real estate is a great investment one thing i was here from people who are about to buy a house is buying real estate is an investment one day this house is going to be worth way more than it is now look i get it we're always hearing stories from old farts who bought their homes way back in the truman administration for just thirty thousand dollars and now it's worth four hundred fifty thousand or whatever when the truth is the people who say things like this don account for the invisible factors like inflation in fact yell economist and nobel laureate robert schiller reported that from eighteen two nineteen ninety the return on residential realestate was just about zero after inflation realtors in homeowners are going to flood my inbox with hate mail for saying this but the fact is real estate is the most overrated investment in america and returns on that investment are mediocre at best.

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