Investors should not think of their homes as a pension plan, says Cliffe. In the second instalment of a new 10-video series for eZonomics on lessons from the financial crisis, Cliffe reinforces the message “real estate can go down”.
The series of 10 lessons show his personal view.
An "almighty bust"
Giving the example of house prices in the United States, Cliffe said “speculative fever” was created through a boom in house prices between the late 1970s and 2007. But that boom was followed by “an almighty bust”.
“Real estate isn’t the ultimate conservative investment,” he said.