Is Real Estate ever a BAD investment? If so, when?
As Yishani points out, you always have to do due diligence in buying a house. As I mentioned in this earlier post  I'd highly recommend reading this   book on buying a house associated   with the Wall Street Journal - it   clearly describes the benefits and   challenges of owning a house. One key   takeaway I had was - on average houses   have a "rate of return" on par with   treasury bills. Its best to buy a house if you want to live in a house, not as thinking about it as a "great investment". And its certainly worth the 4-6 hours it takes to read the book cover to cover.