[willnz]

I realise a stock market index fund will perform better than real estate over the long term, but not all real estate is the same.

Surely, buying a property in a vibrant city that is growing and is a nice place to live will likely mean your property value will greatly outpace inflation in the long term?

We bought a house over 10 years ago for $361k spending $50k of our own money.

We sold it last year for $900k.

I don't think it was a terrible investment...

Could we have got similar returns by investing $50k in the stock market instead? Remember, the cost to pay off the mortgage is mostly offset by the fact you would otherwise have to pay rent.

[PleaseLoveMe]

The stock market wouldn't have kept you warm and dry for 10 years as well!

[kichik]

That's a very good profit even when accounting for interest (~$144k), taxes (~$29k) and maintenance (not sure, maybe $10k a year?). Definitely better than 2.5x your $50k with an index fund tied to S&P 500.

[willnz]

Even better, I live in New Zealand - we have no capital gains tax here!