Reason 6 you should buy in today's market
Saturday, October 30, 2010
It offers some inflation protection
Although housing can't entirely protect you from inflation, studies by professor Karl "Chip" Case, of Case-Shiller, and others suggest that over the long term, housing has tended to beat inflation by a couple of percentage points a year. That's valuable inflation insurance, especially if you're young, raising a family and thinking about the next 30 or 40 years.
In the recent past, inflation-protected government bonds or Treasury inflation-protected securities offered easier forms of inflation insurance. But yields there have plummeted of late. That also makes homeownership look a little better by contrast.