A lot of people, including me, put most, if not all of their eggs in the house basket. Usually it is our biggest asset, and each month, we are investing more and more money in that asset. David Crook from the Wall Street Journal online has written a great article about why you should not bet your life's savings in your house. Here are some scary numbers from the article:
Food for thought:
• If you bought a house in Los Angeles in 1990, just as the real-estate market turned downward, you would have had to wait a decade for your home's value to return to what you paid.
• If you bought in Rochester, N.Y., in 1980, you would have seen only a mediocre 4% annual growth for the next 25 years.
• If you bought in Dallas in 1986, as the oil boom went bust, your home wouldn't have appreciated at all before 1998.
Not scared yet? Read on here.
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