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Originally Posted by Merch
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.
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Quote:
Originally Posted by Merch
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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The purpose of buying stocks and other non home investments is to earn money to spend for whatever. How many people buy a house so they can earn money to buy whatever with it and is that a good idea. Home ownership is nothing more than self landlording.