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It's cheaper to borrow against a stock portfolio than real estate (since it's much easier for a broker to liquidate your stocks than for your bank to foreclose
by aianus 11y ago
It's cheaper to borrow against a stock portfolio than real estate (since it's much easier for a broker to liquidate your stocks than for your bank to foreclose on your home): https://www.interactivebrokers.com/en/index.php?f=1595 https://www.interactivebrokers.com/en/index.php?f=1595
Although they only give you 4x leverage vs. the 5x-20x common in residential real estate.
Anyways, I think you're grossly overestimating how good of an investment real estate is. Unless you have some kind of edge (like you're a developer and your friend is on the zoning board or whatever) you're not going to magically get rich doing it. It's just another asset class.
- branchless 11y agoI explicitly named margin accounts so you wouldn't go there. Most people don't know about this. It's all about land. I'm not saying real-estate is the route to riches, I'm saying everyone is speculating on it ("they only go up!"). The system ensures that land prices run ahead of wealth creation which shifts all productivity gains to rentiers.