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You're assuming that housing prices always increase. If they decrease, the property is not generating income but losses even if you rent it out.
by shanghaiaway 9y ago
You're assuming that housing prices always increase. If they decrease, the property is not generating income but losses even if you rent it out.
- AstralStorm 9y agoThat is equivalent to any investment. The difference is that the property still generates income if not capital total gain. A depreciated stock generates no dividend. Moreover there is a floor on a value of a home unless you let it completely unmaintained or it gets bombed in a war. There is no floor on stocks. There is such a floor on some material futures. (Though probably lower.)