A home as an investment? I'm no expert but, based on reading stock market returns on average are higher. We all know, stock market real estate only go up. No one tells you
except when they don't.
Real estate can be profitable due to tax incentives and the fact that it is highly leveraged.
If, you buy a place for 300,000 and put 10% down, you have 30,000 into it. If, it goes up 10%
it is not up 10% of 30,000 or 3,000. It is up 10% of 300,000 or 30,000. Leverage also works in reverse. Remember the real estate bubble? Subprime mortgages etc?
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