Family

Investing in the Roof Over Your Head

I've picked up concerns about the state of the housing market from Zimran Ahmed. The problem apparently is that prices of houses are too high a multiple of the purchaser's yearly income, and that rental prices are not tracking the upswing in purchase prices. A normal ratio is 2:1 or 2.5:1, but the market has ratios as high as 10:1, in Hawaii. The house we're planning to build will be about 4.5:1.

This raises two questions: can we afford it? And, can we expect a return on this investment? On the other hand, now may be the best time to convert our equity.

Add to those concerns the cost of fuel for heating and electricity, and I start to want some assurances in my spreadsheet.

10:01:17 AM # Google It!
categories: Family