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> real estate gains have traditionally lagged the stock market Does that take into account the relative ease and long term leveraging in real estate vs. the st
by HWR_14 3y ago
> real estate gains have traditionally lagged the stock market
Does that take into account the relative ease and long term leveraging in real estate vs. the stock market?
- lumost 3y agoConsidering the above scenario where real estate is gaining at 75k per year. A wealthy individual could easily leaver themselves to 75*5 = 375k/yr. Using the starting cost of a home at 600k, this would equate to an average rate of return of about 300% Such rates of returns are simply impossible in the general stock market without getting very lucky.
- stouset 3y agoYou can lever yourself in the stock market too.
- HWR_14 3y agoNot with 30-year lock-in in rates and with a similar commitment to avoiding margin calls for that long if your bet goes poorly in the short term.