Stocks Better Investment Than Homes: Prof. Shiller

JasonNB84 | Feb 11, 2013 11:00 AM ET You can`t live in your stocks

ckoffend | Feb 11, 2013 11:25 AM ET Jason, I believe his inference was toward real estate as a straight investment. Such as rental properties. Not with regards to primary residence properties. Home ownership valuation or payback has to be looked at differently than real estate as an investment. Even so, homeownership for everybody does not make financial sense. While homeownership for some definately makes sense. And for others, does not make sense. The longer you own your home, the less valuable the mortgage deduction is. Unless of course you are one of those idiots that always takes out new loans against any equity that gets established. Those people have all sorts of other problems, the least of which is their home being an investment.

handballforlife | Feb 11, 2013 11:48 AM ET They got to him too.....they want us in so they can get out....look at these prices and then tell me what`s 100 percent better then it was in 07.....buy priceline at 700.00 google at 700.00....chipotle mexican grill at 320.00 come on ....you`ll lose the house too if you invest now

BasicServicesAplenty | Feb 11, 2013 12:29 PM ET ckoffend The biggest value of a home/residential property from an investment perspective is the is the homeowner`s ability to safely use leverage to magnify those potential 1-2% per year inflationary asset returns by 8-9 times. There`s no other asset class available to the typical American where he can purchase the asset using an 80%+ debt to asset value and not be into a derivative based on the asset like an option, futures or ETFs. That leverage used to ensure that the American Dream of homeownership and solid midddle-class financial status since the home was such a big part of your assets. I truly hope that our elected political officials don`t screw-up the goose that laid the golden egg for middle-class America.

Rufusbob | Feb 11, 2013 12:33 PM ET What I find hard to reconcile is today`s market value of many, many homes is less than replacement cost of just the structure (i.e. house). Therefore a seller is giving away the land and foundation. If central bank money printing will eventually create inflation, this difference (replacement cost vs market price) will only become greater unless prices go up too. Homebuilder stocks have had a recent run-up, so it seems the market anticipates an improvement of new home prices / builder profits. .....Or else the homebuilders are overvalued if Professor Shiiler is correct?? Bob

gee.la | Feb 11, 2013 01:07 PM ET Most Americans, because of the mentality of vanity, are living a house unnecessarily big, wasting more money on all kinds of cost- maintenance cost, utility cost, property tax...But pay much less on their bodies and their minds, eating food worse than dogsā€™, entertaining themselves with garbages. Simply, Americans live an unbalanced life. So you see so many illnesses and so high medical costs. It seems the demand for physicians is unlimited. These are all part of the old tradition. The growth is built in breaking them.

halwas | Feb 11, 2013 01:08 PM ET And of all the forms of real estate I can think of - beach houses especially in NJ/NY have to be the worst of the worst. They hit ridiculous levels just before the housing crisis - fell 20% or more - then got hit by hurricane Sandy. Now people are trying to unload hollowed out shells on 50X60 lots for $400K. And what is it going to cost for flood insurance going forward? And property taxes in these beach communities? Avoid, avoid, avoid until the land prices reflect the risk.

antisocial | Feb 11, 2013 01:11 PM ET more gasoline to the fire...lol shut up fool...

sidfeinberg | Feb 11, 2013 01:18 PM ET This Dumbarse is out of his mind. According to his own data, values have gone up 15% last year and may exceed 20 % this year. Real Estate is on fire, you better buy now or you will get priced out. I just outbid 7 investors on a rental property. The list was 59, but I bid 110 to get it. My Realtor guarantees 20% increase per year, so this was a no brainer. You must buy now or you will get priced out. Values up by 20% easily by the end of December






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