Analyzing the True Price of a House (Selling Price vs. Mortgage Payments)

4 years ago
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In this excerpt from my podcast, we discuss the true price of a house based on payments opposed to the selling price. We talk about the average inflation rate over the last 3 decades and how important it is to factor interest rates and inflation into the value of a house.

The mainstream media will tell you the price of houses selling and say, ""We're in a bubble and you should buy as many as you can. The market is going to crash!""

We need to remember that real estate is the most debt-friendly asset and can be refinanced very easily.

People buy based on a payment, not a price, and that is an important factor to consider. The price of a house can increase 4 times while the mortgage payment only doubles. A house today in 1989 dollars cost about the same as a house in 1989.

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