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Yeah, but those other assets don't let you live in them. You have to subtract out the cost of your rent for those other assets if you want to compare it to a ho
by cortesoft 5y ago
Yeah, but those other assets don't let you live in them. You have to subtract out the cost of your rent for those other assets if you want to compare it to a house.
- jdmichal 5y agoI usually phrase this as: Your first house is covering a short position. Your second house is an investment.
- pertymcpert 5y agoMy mortgage for my house I just bought costs me $7k a month including taxes and insurance. Of the $5.3k I pay a month to service the debt, ~$3k just interest on the debt. Only $2k goes towards paying down the principal. Which means that I'm forced to pay down this mortgage by $2k every month instead of investing it into stocks. If my house value goes up 50%, that's fine, but if it doesn't or goes down, then that could be a big missed opportunity.