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Barbara Corcoran weighs in on whether people will once again view buying a home as a good investment for retirement.
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Buying homes still a good investment home prices are up eighteen straight months that's according to zillow but -- remain still very wary.
After what is being called the lost decade for home price appreciation.
So will a home ever be considered and -- -- for retirement again.
There's no one better to ask that question that our next guest Barbara Corcoran she has her finger on the pulse the real estate market as the founder of the Corcoran Group.
You know it does feel like there's been this fundamental shift of the have lack of confidence -- loss of confidence but -- isn't just come isn't more than that I feel like.
For the Jennifer my parents' generation you know -- -- scraped everything together for the down payment -- you borrowed it from your parents.
You stayed in the house it was this great store of value -- that at some point twenty or thirty years later you sold it for me.
Many many many multiples we -- -- you retired.
And now for people under forty I think they've lived through.
This -- and they think that something has really changed.
-- something fundamental did change prices went down and that's a big -- to play.
But if your parents for example thirty years ago what the house -- average home then was 71000.
Raising its 171.
It's not as though they wouldn't have the equity and it wouldn't be as a people going forward we'll have the equity but what has fundamentally change is what people do with their house.
Most of the problems that we've had about people being disappointed retirement even the last twenty years -- -- fifteen years.
Has been because -- slamming a home with a lot of loans but they kids to college so they've spanned this fictitious equity.
Comes down to retiring they really didn't have a lot left.
But -- and live he got a lift some way in the range or you advice of those two options open.
Well speaking of renting or buying -- -- we looked at a -- over -- is that what else you could do with your money so if you chose to -- -- renter right now and instead you put your money say in the -- patents are in the stock market because you thought that would -- but you know over the past years but -- we have the comparison here between comprises.
You can see there so home prices were the winner vs the market in the early part of the 2000 obviously but that we hit that.
Big slide in the financial crisis and since then they've been a -- you think over time that cracks -- I certainly do I think it depends when you buy and when you sell and most people don't.
Jump in and out of the market most people staying home for a lot of years and capture that equity I think that is not going to change -- much going forward.
Yes -- what a lot of nearest you because you're right that is one of the biggest differences is that people expected to sort of make money in two or three years look -- pick any twelve year period from the beginning of time just like a dart board and throw that -- and twelve year to twelve year.
He always -- with real estate but if you happen to have bought.
In that seven year period when prices went down of course your loser but -- one other thing that people take for granted.
About buying a home and -- becoming an estate and that is it forces them to say.
Very few people really will take the money saving invest in the stock market the typical American.
But every American who loves -- home is going to be forced to make that mortgage payment every month and all of them do.
But as you said you've got to not -- the house of its equity by taking out loans and and paying for other things and that's a great point what can I tell you that's a great theory but a lot of us just don't have the cash to send -- to college you don't want to saddle them with enormous debt and everybody's going to college today.
So really do you blame apparent once you know parents -- you'll -- anything we can if it means leaning house to get kid through college.
Everyone of -- usually choose to do it.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- In the end the only thing you want to ask yourself is would I rather -- Or I would I rather -- And in the end most of us would really rather buy and if you wanna -- to good school in the pre school district chances are really good -- gonna have to buy.
Barbara Corcoran state.
