Quote:
Originally posted by snowman
that $30k house from 1974 is now going for a cool $1,000,000.
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SP500 in 1976 was 104 now 1325.
No interest payment, no maintenance, not tied down to one location, reinvest the dividend yield, no 1% to get in and no 6% to get out.
OTOH, housing is highly leveraged, ongoing tax benefit (though both decrease w/ each year of mortgage), and you get to live in it.
Not sure what point I'm really making - stealing time from work here - but if you'd put house down pymt into SP500 in 1974 and every following month for 30 yrs had put diff between mtg and rent into SP500, I think you'd be far ahead - speaking only financially, agree emotional aspect of "ownership" very important too.