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It costs about $400k to own a home but I can buy a share of VOO for less than $500 and own a piece of the top 500 companies in the US. Ownership of pieces of co
by phyzix5761 2y ago
It costs about $400k to own a home but I can buy a share of VOO for less than $500 and own a piece of the top 500 companies in the US. Ownership of pieces of companies (stocks) is far easier and more affordable than home ownership.
Additionally, your return over the long term on personal real estate is only 4% per year while the S&P 500 average returns per year are 10%.
Home ownership is not always desirable or the best financial decision for many people.