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Owning $300k of stocks is better than owning a single $300k property for the reason you give. The question becomes a lot fuzzier when you overlay your own need
by scrumper 11y ago
Owning $300k of stocks is better than owning a single $300k property for the reason you give. The question becomes a lot fuzzier when you overlay your own need for housing on top of it.
What I mean is, if I had $300k cash in the bank and I was renting an apartment I enjoyed, I'd be smarter to invest the $300k in a diversified portfolio than spend all of it on a single rental house and playing landlord.
Equally if I had $300k cash and nowhere to live, I might very well be better off buying a house than renting a home and buying the portfolio. A vast amount depends on individual circumstances and stage of life.
- refurb 11y agoI don't disagree. I'm certainly not anti-owning a home, but it's much more risky than people think it is. This is despite all the people who witnessed the 2008 crash. I see people stretch themselves with a mortgage, dumping every dollar they have in order to make up the down payment. A single-asset investment philosophy. Why do they do it? The only answer I can imagine is that risk of their home going down in value is low. I disagree the risk is that low.