I posted a blog with reference to an article in the Wall Street Journal (March 12, 2007) about why investing in homes may not be the best financial decision. Read the original here if you wish: link
Here is a comment on the blog:
I guess my thoughts are headed towards the classic Risk-Return graphs. I could play roulette and have possibly HUGE returns on my little investments but I stand on a high risk too. I appreciate Mr. Anonymous for carrying this debate forward. I am not taking a stand that investing in houses is not right. I guess it would make more sense to read the full article on the Wall Street Journal, but I can not publish a subscriber-only article without breaking copyright laws.
The article also refers to people that bite more than they can chew only to make that killer investment in homes. Further, people borrow against their home loan to plan vacations, renovations and big-screen televisions.
I have bought the author of the article, David Crook's book on home investments. I haven't gotten around to reading it yet, but I am going to before I put my money down on a house.