5 ms·
Is it? I’m fairly certain that my returns on index funds beat risk adjusted real estate gambles in most markets over most time ranges.
by etrautmann 3y ago
Is it? I’m fairly certain that my returns on index funds beat risk adjusted real estate gambles in most markets over most time ranges.
- etrautmann 3y agoAnd certainly when factoring in liquidity and peace of mind, which is different for different people but has real value to many.
- AnimalMuppet 3y agoHouses are where the average person gets to be a leveraged investor. If I invest in an index fund and it goes up 10%, I've made 10%. If I invest in a house and it goes up 10%, but I invested with 5% down, I have tripled my money. But the reverse is also true. People are hugely sensitive to house prices falling, because they are leveraged. If I owned my home outright (no mortgage) and the value fell 10%, I wouldn't be happy. But if I had a mortgage with 5% down, all my equity got wiped out, and I'm now 5% underwater.