So I live in an objectively crappy part of England, in a town which is engaged on a spiral of permanent decline. If I tell you that it's a hive of robbery, and has been in the news as a breeding ground for child abuse, you can probably work out where I live.
Whenever I read through FI resources, they assume that real estate is an asset which appreciates in value, and (barring any crashes like '08) will always be worth more next year. Around here, houses are like cars: depreciating "assets" that aren't worth the paper their deeds are written on. I own or have owned three properties in the town, and here are the figures:
- Bought before the Crash for 90k, sold this year for 50k;
- Bought just after the Crash for 110k, currently valued at 70k and falling;
- Bought just after the Crash for 120k, currently valued at 80k and falling.
So I had two questions. Given my luck in real estate so far, should I just keep any future investments liquid in Vanguard and such like? Also, should there be some recognition more widely of the fact that real estate isn't
always a good idea?