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You can "build equity" by doing things like buying, well, equities. Or fixed income, or any of a variety of other investment vehicles. The only thing special a
by yummyfajitas 11y ago
You can "build equity" by doing things like buying, well, equities. Or fixed income, or any of a variety of other investment vehicles.
The only thing special about real estate investment is the massive government subsidies for it. (E.g., owner-equivalent rents are untaxed, mortgage interest is tax deductible, etc.) The best solution to that problem is simply to eliminate those tax subsidies.
- Tycho 11y agoMortgages also give people access to leverage though, so it's a bit different from other investments most people make.
- hueving 11y agoThe major thing that is special about real estate investment is that you can live in it. If I could live inside of Google stock and it would eliminate my need to pay rent, then sure, equities are just as good.
- yummyfajitas 11y agoIf you invest in equities and get a revenue stream that pays rent, you can "live in it". The only advantage to real estate is that the revenue stream is tax subsidized. This is fixable in multiple ways; start taxing imputed rent (tolerable) or stop taxing capital income (far better).
- hueving 11y agoBecause returns on equities are stable enough for rent. /s Have you seen what happened since the year started? If you're thinking of dividends, just for 1k/mo apt you need to have 400k worth of a 3% yielding stock. 400k in a normal us housing market gets you much better than the 1k rent.