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> Also people who are more risk averse towards stock markets (Hi, I'm German) will probably prefer a house/flat over some stocks. The risk averse might prefer
by bachmeier 3y ago
> Also people who are more risk averse towards stock markets (Hi, I'm German) will probably prefer a house/flat over some stocks.
The risk averse might prefer renting in that case. It can be quite a shock to find out that you need to pay $15,000 to replace your roof after a storm goes through. The ups and downs of the stock market don't require you to make a large payment on short notice.
- jjav 3y ago> The risk averse might prefer renting in that case. If your risk averse window is only short term, that might make sense. If you think of housing risk over your lifetime, renting is the worst because now you have this huge uncertainty over how much housing will cost in 10, 20, 30, 40 years from now. How much will it cost in retirement 50 or 60 years from now (for someone in their 20s) when you have no income anymore? Will rent increase so much you'll be homeless in old age? If you're risk averse, buy a house and make housing costs quite predictable for the rest of your life.