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Leverage. You can borrow 80% for an investment property but no bank will lend you (not an individual anyway) money to buy ETFs. You might get a margin loan, whi
by valzam 4y ago
Leverage. You can borrow 80% for an investment property but no bank will lend you (not an individual anyway) money to buy ETFs. You might get a margin loan, which is much riskier than a mortgage and requires you to have X upfront to borrow 0.8X. A mortgage means you can borrow 5X.
There ade also tax benefits to real easte in some countries (most notably Australia). In short, the game is rigged and the market distorted to make real estate more attractive then it should be.
- littlecranky67 4y agoLeverage takes place with Stock and ETFs, too - it is just less obvious. Companies you buy stock of are of course leveraging their financial investments by taking loans from banks or emitting corporate bonds - and these loans are used to invest and generate profits, of which you receive your share.