Hi Jason, thanks for responding.

Housing is both a necessity and also a speculñative asset.

Where I live some houses cost half a million but if I go inland just 30 km the same house is just 50k . Both are equally useful but one has more demand than the other.

The reason why houses in the right location are so expensive is pure especulation and there is nothing wrong with that. The problem is assuming that this will remain to be the case in 20 years.

Would you consider a small flat in manhatan for $1 million a good investment?

Well, it is very hard to tell. Even though right now it is very desirable, that might not be the case in the future.

But if you get the location right (and this is a big IF) housing is still a great investment.