when you re generationally deprived of real estate heroin, you end up with stock market cocaine
it s all partly gambling but different strokes for different generations
it s all partly gambling but different strokes for different generations
People need to live someplace to be just part of society and also to just survive, plus there is emotional and status aspect. Western construction is lagging behind population growth in popular places plus running / ran out of good space. Do the math.
Do the math and you'll find that putting your money in an index fund almost always beats real estate, with much less risk and much less work.
It's easy for one property to underperform the market by a lot. It's hard for an index fund to do the same.
I own a $1.5M rental home in a luxury destination and profoundly regret it. The amount of work I put into it was enormous. I'm not outperforming the market, and I can't sell it because the mortgage rate is 2%.
you'd be right if someone was willing to let you lever up 5:1 and bet on index funds. however you can only accomplish this with real estate, and with such leverage the required rate of return is far lower to make it worth it.
Every time I ask people to factor in their time in managing the property (yes, even time spent finding the property to buy counts), they end up way behind.
But that doesn’t take into account how RE is providing you with shelter and additional SQ footage. If your total mortgage, insurance and taxes are less than renting, which is the case with mine, then there is pretty much no way to be at a loss with real estate. There’s pretty much only upside then over any 3-5 year period.
In parts of the country there's a crash in the works (Sunbelt, Florida in particular).
Where I live renting is substantially cheaper than buying, by thousands a month. You are absolutely better off buying a mutual fund with the difference and enjoying the flexibility of having cash.
I am not so sure what is going on in the housing market, but there is so little inventory in the hotspots, and what appears to be a dump in the no-longer-hot-spots, that it's scarier than buying stocks right now.