Home Ownership as an Investment

Keep going


(This is stochiki’s post btw)

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The point I’m making is that most people dont buy stocks on margin, and most people use mortgages to invest in real estate. So if you calculate the historical returns to owning a home, they are usually juiced up because of leverage. Of course some people get destroyed as well, but historically that’s not the case. Where I live there is no doubt that real estate has performed better than the major stock indices, and especially true when people used long term mortgages which increases the leverage. Whether that trend will continue, I don’t know. I’m merely disagreeing with the idea that owning a home doesn’t pay off that much.

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Okay so it looks like you have backtracked on the post I initially replied to (the one I posted pics of)

Got it

Sometimes trolls call other people trolls, but that don’t make them not trolls.

Bad grammar intentional

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No, we are literally arguing over historical returns. He is claiming that the typical homeowner in canada would have been better off renting. Totally ridiculous. Any canadian would laugh at him. In a way, I am being super respectful in this thread given all the insults he’s been hurling at me while being absolutely wrong.

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Where did I saying renting was advantageous?

Find that post please….

I’m saying investing in low fee funds is the way

Always have. Always will. Quote me on it bb

Random joke:

The rabbi/priest/whatever preached to his congregation about the importance of loving-kindness. After the sermon, each of the 3 main people he had in mind walked up to him and said, Rabbi, good sermon. But you know what, I hope that other guy takes it to heart!

If you’re not buying, then you are renting, aren’t you? Or do you live in a decked out van or possibly your parents’ basement?

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so real estate is always a bad investment but you also suggest not renting. Great stuff.

Pro tip: if someone calls you a troll, that doesn’t mean you are. :slight_smile:

That’s a whole different can of worms which is why I didn’t even bring up renting

Renting in general allows you to spend less because you can rent something simpler and smaller. This gives you extra $$ to invest

Of course the flip side is, buying a similar property could result in savings on rent. Hang onto it long enough and those transaction costs slowly spread themselves out over a longer period of time.

Anyways too situational so no point in trying to argue either case

Anyways my initial argument was a counter to this

This is one of those arguments where you go to respond, then you realize that everything you want to say (which you believe is a valid counterargument), has already been said.

Well, maybe there’s one thing left to say. The decision to buy real estate, vs the decision to rent, is the same can of worms, not a different one.

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Yea I’m screaming about taxes, admin expenses, and fees

He’s screaming about leverage

That’s it. That’s the last 150 posts

Why not both?

While I’m dispensing faux wisdom for the night, here’s another one:

Philosophy arguments tend to degenerate into linguistics.

I think it has some bearing on this but it’s too late at night to explain

Bro, pass the joint.

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I would but I’m too far removed from FM (15 years!) to calculate IRR

Just add an appropriate amount of closing costs to the buying and subtract an appropriate amount for selling (6% agent fee then whatever transfer taxes you are subject to)

Anyways the real troll job is creating a study problem to try and prove a 22% return on investment for an online argument. (Completely removing real life expenses) I respect it but unfortunately it doesn’t reflect reality