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Selling your house in an emergency would be similarly bad as exiting the stock market at an unfortunate time. The long-term ROI after costs and inflation of st
by Aulig 5y ago
Selling your house in an emergency would be similarly bad as exiting the stock market at an unfortunate time.
The long-term ROI after costs and inflation of stocks (global) is about 3% higher p.a. than of property (global). Unfortunately this source is in german, but it cites research papers too, you can check those for further investigation: https://www.gerd-kommer-invest.de/die-rendite-von-direktinvestments-in-wohnimmobilien-besser-verstehen/ https://www.gerd-kommer-invest.de/die-rendite-von-direktinve...
- alach11 5y agoBuying a house can have an advantage over stocks in the leverage you get with a mortgage, and in certain cases tax incentives. Whether that’s enough to compensate for the better returns of stocks is the hundred thousand dollar question.
- Aulig 5y agoTax incentives depend on your legislation, but they can make a difference, yes. Leverage also comes with higher risk, which makes it a bit of an unfair comparison in my opinion. If you really wanted, you could also use leverage on your stock investments, but I personally would never do that.