Your real estate example is one of the reasons I’m still a renter.
amanda w.

Solid plan in the grand scheme. You have to look at each situation in terms of how it affects you.
For me owning is a better deal because A) we got a sweet deal (family purchase) B) we aren’t going anywhere else, for a decade plus C) based on the price we got it would cost more to rent (when you subtract off the principle cost and factor in the deduction of interest/taxes).

That said we are aiming to keep our equity in our house to less than 25% of our net worth, since as a whole real estate has historically been the worst kind of investment asset you can own, appreciating at an appreciably lower rate than other asset classes. But it is also the only real asset that you can live in and own… try that with a stock certificate.

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