Which is not the same as making the profit on the property. If that is what people want to do, not assume the risk but simply pay for use of a property, we have a term for it. Renters.

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2007 X3 3.0si, 6 MT, Premium, White

Retired:
2008 535i, 6 MT, M Sport, Premium, Space Grey
2003 X5 3.0 Steptronic, Premium, Titanium Silver
2002 325xi 5 MT, Steel Grey
2004 Z4 3.0 Premium, Sport, SMG, Maldives Blue

So what are you advocating? If you aren't buying property for profit then rent?

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An unwavering defender of those I see worth protecting.

"promote the general welfare, not provide the general welfare"

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

No, if you don't want to own a property, with the corresponding potential upsides and downsides, then you should rent.

__________________
2007 X3 3.0si, 6 MT, Premium, White

Retired:
2008 535i, 6 MT, M Sport, Premium, Space Grey
2003 X5 3.0 Steptronic, Premium, Titanium Silver
2002 325xi 5 MT, Steel Grey
2004 Z4 3.0 Premium, Sport, SMG, Maldives Blue

I guess that is one way of looking at it, can't say I agree...at all.

__________________

An unwavering defender of those I see worth protecting.

"promote the general welfare, not provide the general welfare"

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

Are you saying they shouldn't ???

__________________
"What you hear in a great jazz band is the sound of democracy. “The jazz band works best when participation is shaped by intelligent communication.”
Harmony happens whenever different parts get to form a whole by means of congruity, concord, symetry, consistency, conformity, correspondence, agreement, accord, unity, consonance…….

No, do you honestly believe the average home buyer studied the principals of the market in which they bought their home from a investment standpoint, or were they more concerned with schools, neighbors and relative travel to work/shopping? Seems there is some assumption that everyone was in home buying for the money.

__________________

An unwavering defender of those I see worth protecting.

"promote the general welfare, not provide the general welfare"

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

I consider myself as average and i suppose
my circle of friends could be considered average
as well and everyone i have ever talked to about buying
a home did their homework. Weather it was
an investment or not.

Even a lot in California can be very expensive so
the complete package has to be reviewed and considered carefully.

Yes there where a lot of folks out this way who bought for
all the wrong reasons and didn't do their homework.
Or they Knew what they were doing and hoped to beat the system.
Would i call them average? I couldn't say.

__________________
"What you hear in a great jazz band is the sound of democracy. “The jazz band works best when participation is shaped by intelligent communication.”
Harmony happens whenever different parts get to form a whole by means of congruity, concord, symetry, consistency, conformity, correspondence, agreement, accord, unity, consonance…….

Exactly. So the blanket "unless you're buying for profit, rent" statement makes very little sense to the average person. I'm kind of curious of the notion that the two individuals posting saying in the lines of "it is an investment" are both from California

__________________

An unwavering defender of those I see worth protecting.

"promote the general welfare, not provide the general welfare"

We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.

Considering the costs of homes, the land, the building materials, the labor, the permitting, THE INVESTMENT, everyone should have a basic understanding that owning a home comes with a very important fiscal responsibility.

A home is the most expensive thing most people will buy during their lifetime and most people take near 30 years to pay it off.

Anyone who bought a home and did not take a couple of hours to study the market in their area is an absolute moron and doesn't deserve to be a homeowner.

Cause regardless if you are buying as in investment or not, it still is an investment. And I understand your point Wagner, some people buy to have a place they call HOME, or cause they don't want to rent, etc. But the reason for someone wanting to buy a home DOES NOT alleviate the responsibility they have in first doing their research.

Comparatives of other houses sold in the area, being familiar with the market, understanding rates, taxes, cost of maintenance, etc.

It is MOOT why they bought a house, it is only important that they did buy it. Do they know if there home has warranties? A leaky roof? Neighbors that don't take care of their property? Is a highway being redirected through their front lawn? Does the city say they can't build a second floor addition because of height restrictions and setbacks?

Again, banks are merely the lenders who operate in a fashion that try's to minimize their risk. After all, a 5%-6% return is certainly not a financial windfall.

If you buy a house and you overpay, it's not the banks fault. They do not SET the price and they do no ACCEPT the price. They simply decide if they are going to give you financing. And if they don't, you can always try their competitor.

Blaming the bank for a decrease in value in the home market is ludicrous. If you own, you have a responsibility to your investment, regardless if you think it is or is not an investment.. It is equity, is has value, hence it is subject to peaks and valleys, just like stocks, bonds and everything else under the sun.

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"When two people agree on everything, one of them is not necessary" - Arliss