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You also have to be cool with knowing that your real estate gains are largely contingent on people being unable to afford a home to live in. House prices rise

You also have to be cool with knowing that your real estate gains are largely contingent on people being unable to afford a home to live in. House prices rise because of lack of supply, people are unable to make down payments/get approved, people can make rent though, which is more expensive than the mortgage on the house they are renting. In the past renting was a stepping stone to home ownership. But now it's become more and more a lucrative trap to hold people down in as home prices have skyrocketed. Landlords are double dipping where the home value increases also means that the rent they can charge increases. Meanwhile tenants get slapped twice over, their rents rise and the cost of a home runs away from them. Sure it can be lucrative, but at least right now it feels like a really dirty way to make money.

LunaSea 2y ago
Lot's of people don't have the means, financial stability and minimum stay duration required to buy real estate. In my European country, you need to stay 5 years in the appartement you bought, otherwise you need to pay back a large amount of registration costs (tax) back.
voisin 2y ago
I think you could make the same argument about the externalities of many of the components of the S&P 500 too. E.g. you also have to be cool with knowing that your ETF gains are largely contingent on the destruction of the natural environment, or the addicting of people to pharmaceuticals or social media, or… It turns out our capitalist system associates very few returns to human flourishing!
- Workaccount2 2y ago
  Most markets don't have the stranglehold on supply like real estate does. Especially in populated markets. Medical is similar, since it's basically "pay us this or suffer/die", but the returns from medicine are generally fairly lackluster since there is so much cost/risk in failed trials.

LunaSea 2y ago

Lot's of people don't have the means, financial stability and minimum stay duration required to buy real estate. In my European country, you need to stay 5 years in the appartement you bought, otherwise you need to pay back a large amount of registration costs (tax) back.

voisin 2y ago

I think you could make the same argument about the externalities of many of the components of the S&P 500 too. E.g. you also have to be cool with knowing that your ETF gains are largely contingent on the destruction of the natural environment, or the addicting of people to pharmaceuticals or social media, or… It turns out our capitalist system associates very few returns to human flourishing!

Workaccount2 2y ago
Most markets don't have the stranglehold on supply like real estate does. Especially in populated markets. Medical is similar, since it's basically "pay us this or suffer/die", but the returns from medicine are generally fairly lackluster since there is so much cost/risk in failed trials.