5 ms·

I suppose it depends where you live. But in general, in growing cities it's a matter of supply and demand. More and more people move to growing cities, and ther

I suppose it depends where you live. But in general, in growing cities it's a matter of supply and demand. More and more people move to growing cities, and there is a fixed supply of zoned land to build on. A few other reasons to add to your list: - Preferential tax treatment. In the US and Canada, capital gains/appreciation on your home is completely TAX FREE. For comparison, any gains you make on the stock market 15-40% will go to taxes. - Leverage. Try going to a bank and ask for a $500K loan to invest in stocks. Not going to happen. You can do this with a mortgage at incredibly low interest rate.

refurb 8y ago
In the US appreciation is only tax free up to $500k.
- EpicEng 8y ago
  "only"? What percentage of home buyers do you imagine see more than $500k in appreciated value on their home?
  - sokoloff 8y ago
    It's $250K for an individual, $500K for a couple. It's quite easy for a coastal city home to appreciate by more than the $500K exclusion. If I had to guess, I'd take the "over" on 5%.
  - refurb 8y ago
    A couple bought a house near us in SF for $900k back in 2011. It’s now worth close to $2M. They’ll be paying taxes on half of that appreciation.
    - deleted 8y ago
      [deleted]
    - masonic 8y ago
      ... and CA taxes on the full amount.
- masonic 8y ago
  ... only for couples filing jointly (otherwise $250K), and only for Federal taxes.