Factors that are proportional to house value (property tax, transaction fees, maintenance costs) have a big impact on relative profitability because the margina

Factors that are proportional to house value (property tax, transaction fees, maintenance costs) have a big impact on relative profitability because the marginal gains are actually small. Most of the "advantage" of home buying comes from the ability to borrow money at (e.g.) 4% and hope the home appreciates at (e.g.) 5%. Small taxes and write offs can double or negate profitability. (The down payment part of the investment might also be good diversification, but it is unlikely to appreciate as fast as the same cash would in stocks.)