|
Right now, it may be better to put the money in stocks, who knows, but also with a depressed (or corrected) housing market and low interest rates it seems like a good time to buy, remember, buy low, sell high?
One of the things that article that demonstrated how the stock market out performed the housing market probably didn't take into consideration was the power of leveraging. In order to buy $300k in stocks, I need to have $300k in cash. In order to buy a $300k house, I only need $60k. Now, if you consider $60k in stocks at 11% vs a $300k house at 6%, it will take WAY longer to beat it.
We decided to buy our first house a year ago because we couldn't rent a house for as cheap as we can make payments on our own place. Our $200k loan costs us a hair over $1000/month, and insurance and taxes are about $325/mo. To rent this same house would probably cost us $1500/mo, so, it was worth it to buy.
I'm sure there's a 100 guys on here smarter than me who will argue contrary to my opinion, but it is what it is.
__________________
1960 356 Super 90 - EFI'd
1989 190e 2.6
1991 964
|