Home property value survey

BCEagle91
Mon, 30 Jun 2008 18:40:23 +0000

“Really dumb house vs stocks analysis, the writer does not even discuss that most homes only require a 10% down investment and that you get all the increase + you get to live in it. Your stock has little intrinsic usefulness except you can sell it quickly. If you asume typical LTV ratio of 90% the return on the home is FAR greater than stocks in this example.”

You can use leverage on stocks too. Or you can go with options to get far more leverage. Leverage simply magnifies. You can lose much more money with leveraged investments (houses for example), too.

Stocks in companies like Apple, Cal-Maine, Pan American Silver Mines, GoldCorp, etc. have 1,000 percent returns this century. That’s not too shabby compared to houses.

I prefer to avoid levered investments whether they’re houses or stocks.