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- Author
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Peck, Don
- Subjects
- *
REAL property , *REAL estate investment , *RATE of return , *REAL estate business , *INVESTMENTS , *INTEREST rates , *HOUSING , *VALUE (Economics) , *ACCOUNTING , *ECONOMICS - Abstract
The article reports that while nearly a quarter of the homes bought in the United States in 2004 were investments, not residences, real estate is generally a poor way of generating return on investment. A chart created by economist Robert Shiller suggests that people overestimate returns on home purchases. From 1890 to 2004 real home values rose by an average of only 0.4 percent a year. The chart also shows that the current boom is almost unprecedented historically.
- Published
- 2005