“it’s often said on this board that real estate is traditionally a horrible investment over the long-term.”
I don’t think that is accurate at all. We simply feel it is a timing issue, that’s all. This isn’t a normal market. It is bubble popping.
It is occasionally said, however, (as you also point out) that because you can buy real-estate using leverage, it can be an excellent investment, even if growth is moderate.
Leverage also accentuates the downside risk. a 1% home price reduction in 1 year on a home purchased with 20% down is -5% that year, not adjusting for inflation, and not including interest.
