Quote: (05-28-2014 12:14 AM)cooledcannon Wrote:
Quote: (01-26-2014 06:32 PM)cardguy Wrote:
So - if somebody own a home - you think they would be better of selling it and buying a security.
And then just start renting each month?
Interesting. I have never considered that before. I am not sure about the US - but the UK is famous for its obsession with home ownership and house prices. So it is interesting to hear something different in this area.
Pretty much. There are some benefits to owning a home- like you dont have to deal with landlords etc and you have complete freedom over that house, and maybe tax breaks; but there are also benefits to renting(location independence, owner has to deal with many problems with the house)
When you buy a house, you become a real estate investor whether you want to or not. Investment is risky; I reckon index funds are less risky and more profitable on average than real estate. Real estate is also far less liquid than stocks are(liquidity is good, as you can quickly access it if you need it for emergencies), and have higher % fees(real estate brokers)
So much so that I would only go real estate if I researched the prices and the trends properly like an investor would. Or am rich enough not to care either way.
Yes.
The thing that I always find interesting about houses is that everyone is supposedly an expert on real estate. Real estate agents and big players not only have vastly more experience than the average person when it comes to these things, but they also have access to huge amounts of data that the average person either doesn't have access to or does not look at. Yet the same people who will talk about the stock market involving speculation are purely speculative when it comes to real estate.
The other amusing thing is looking at the process involved. Flick a few light switches, flush a toilet, draw some blinds, run your hand along the kitchen bench, rustle a few leaves on the trees in the backyard. Mate, I got a bargain! Do I know what I'm doing or what? Can't go wrong. Houses only ever go up in value. Sweet! Fuckin' genius, mate.