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But most of them would not think you’re crazy once it’s specified to real estate. This means either financial professionals are blind to the similarities or the

• dehrmann 2y ago
  It's that people have an irrational emotional attachment to homes and financial advisors know they wouldn't be in business if they told prospective homeowner to put the money in an index fund. Where owning a home wins is it forces people to set aside income and put it in an asset rather than spend it, but there are other ways to do this.
  • edmundsauto 2y ago
    I think it’s a lot more nuanced than that. Leverage is great, being able to do what you want to your living space has value. It also locks in your housing costs. There are tax advantages. It’s not just a forced savings plan. That isn’t to say it’s for everyone, but it’s important to get the nuance. (Also, it’s not really fair to say an “irrational” emotional attachment - that attachment can generate great joy and a sense of ownership, those are real things and not irrational even if they don’t make someone more money. It’s totally rational to optimize for things outside of money!)