You seem to make the assumption that everyone who has the extra cash is going to prudently sock it away. The reality is that in a credit card society most people would not be a prudent with the additonal money they have. Therefore homeownership creates a forced saving for many people. Now I know that many will argue that Equity lines and other tools can be tapped into against the home but I would argue there are more who buy homes in the hopes of simply paying them off and being debt free.
Here is my question to you bugs. If I bought 1 house a year cassh at a market rate and I did this for 20 years. how owul that strategy ahve worked out for me. You take any 20 year period of time and I will make a bet that in real terms (account for all net present value calculations) I would be ahead.
