Paying a price for houses that aren't homes

Accounting 12, Chapter 11

Link: http://www.canada.com/vancouversun/news/story.html?id=165a2f84-b1f0-41cf-a494-568c87bdf8a4

Summary:
This article or somewhat of a blog is written by Shelly Fralic, found in the Vancouver Sun website and it talks about how many people are buying houses not for living in but investing it. Everyone wants to know what's selling and where, how much it is and who's buying it. Fralic thinks that everywhere we go, there's people talking about houses. She's frustrated that people aren't buying houses because of habiting in it but instead, investing it. She wonders why people aren't celebrating the affordable houses, but instead complaining that value of real estates are going downwards.

Connections:
The connection between this article and chapter eleven is that this idea of people investing on houses instead of living in them is similar to businesses that buy goods for the pupose of selling them for a profit. Many people are buying houses, wishing that the value of it would rise so that they could resell it. Like what Fralic said "Does it matter so much that your home's value might fluctuate in price over time, or that the profit on its future sale won't be the bonanza we expect?", it is possible that the houses may depreciate a lot over time and maybe in the end, they are not profitable anymore.

Reflection:
I think this reason of buying houses is ridiculouse because houses are suppose to be meant to be lived in. People should be fortunate that houses are getting cheaper. It is difficult to expect such high prices on houses because of how stock markets are going through a dramatic change and possibly a recession. Also, because of how the economy is right now, it is hard to expect a major profit through investing houses.