Talk of The Villages Florida - View Single Post - Inflation up 8.3% in August
View Single Post
 
Old 09-14-2022, 04:10 PM
melpetezrinski melpetezrinski is offline
Senior Member
Join Date: Jan 2018
Posts: 227
Thanks: 0
Thanked 183 Times in 105 Posts
Default

Quote:
Originally Posted by CoachKandSportsguy View Post
With oil declining from peak, there will be less inflation pressure on goods, however, labor inflation lags goods / rent inflation and now we are seeing the effects of labor inflation, and the only way to reduce labor inflation is to reduce job growth, which when due to a pandemic and those in their 60's retiring early, results in a labor shortage, means that the Fed may have to follow the Volker formula, and many are betting that won't happen. . .

Just remember that your house is NOT an investment. there is no revenue generated by it and there are only expenses associated with it. a car is also not an investment, just future junk. And in the villages, houses can come close to future junk with no wills/trusts, etc
An investment must generate revenue and can't have expenses? So, a technology ETF that generally doesn't pay dividends and has an expense ratio is NOT an investment? I can certainly understand the "house is not an investment" perspective but I've always considered my primary homes as investments. If I need to conform to your definition, I view capital appreciation as the revenue and I would be paying MORE of those expenses if I rented.