Right. And you only experience the profit in stocks or other investments or other assets when you sell them or sometimes refinance them (auto loans). Same with a house, you have paper profits until you refinance or sell.
Steve, I could sell a large tech stock and buy another large tech stock and chances are they would earn about the same percent. Or I could take the profits and purchase a good stock that is in a sector that is about to turn around. Or I could keep the stock and enjoy the dividend payments.
With a house, I could sell it and move into a comparable house. Or I could sell it and move into a neighborhood that's is starting to turn around. Or I could keep the house and when it is paid off live there rent free.
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