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by beiller
1423 days ago
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There is a lot of research suggesting that housing is not the best investment compared to equities. Many people conflate leverage with real-estate investment. If you apply the same leverage to equities they will far and away outperform real-estate. Try S and P 500 calculator with dividend reinvestment to get an idea. In my opinion, if real-estate out-paces equities or other forms of investment, then we barrel towards a world where no one can afford to save for shelter any more which doesn't make sense, but that's just my opinion. Unfortunately, real-estate is still a profitable investment, and small piddly fed rate hikes won't change that any time soon. |
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And yet most retail investors loose money. My family managed to lose money both by investing in bonds and by investing in index fund - quite of an achievement. They never lost money in real estate.
The reason should be obvious -> most people understand what is a house and how it works, they understand the city they live in and good VS bad areas. Most people don't udnerstand the stock market.