• qjkxbmwvz@startrek.website
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    6 months ago

    Historically, the S&P grows faster than housing prices. So if you tie up a ton of capital in a property, the reduced growth + property taxes mean it’s likely losing you money (not to mention any interest paid on a mortgage). Renting it out makes it a viable investment (and obviously it depends on where you buy).

    Now, whether or not investments should be allowed for things which are basic human needs is another question.

    • moistclump@lemmy.world
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      6 months ago

      Something I always felt was missing from this argument is the leveraged amount of the mortgage. In the stocks my $100k might make 10% annually, but with a house I’ve used that $100k as a downpayment on a $1M home and I’m making the 10% (minus say 3% borrowing cost) return on a much higher number than the physical money I had.

      Not to mention in the states how mortgage interest is tax deductible? I’m not American, that seems like a crazy advantage to homeowners.