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in general, houses appreciate in value over time, but that doesn't mean your house will. leverage multiplies your exposure to the upside and the downside of an
by leetcrew 7y ago
in general, houses appreciate in value over time, but that doesn't mean your house will. leverage multiplies your exposure to the upside and the downside of an investment, and a single house is a much more volatile asset than SPY. imagine how much it would suck to be upside down on that $100k mortgage after five years.
- Spooky23 7y agoYou have to look at the cash flow side too. Your loss is offset on a comparison basis if you were paying rent. You also are limited to losing everything you put in, while leveraged investments can lose more.