"Home prices in real terms didn't increase"

[David Krulac]

"from 1890 to 1990. The American dream of building wealth through homeownership is a FALLACY. That was the bubble thinking but its still fresh in our minds."

Robert Shiller, Economist Yale University, and co-inventor of the Case-Shiller Home Price Index

[Roy N.]

David Krulac

This announcement really comes as little surprise and I do not think it means "investing" in real estate is a waste of time ... 'speculating' over the long term ... perhaps.

I see it as a reenforcement of why I evaluate properties based on their cash flow and model them using either a flat price or slight depreciation {inflation adjusted}.

After all, you wouldn't buy a business on the expectation you will sell it for more 10 - 20 years down the road. You would expect it to be cash-flow positive and make a certain return.