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

Jason Hartman discusses the true price of a house based on payments opposed to the selling price. He talks 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 (converted to 1989 dollars) cost about the same as a house in 1989. Website: www.JasonHartman.com/Properties