You are far more likely to see greater returns investing in something like VOO, Palantir, Apple, Google, etc vs a home. Just something for you to keep in mind if you are debating buying a home.
I don't know why some people buy homes when they can just buy ETFs and stocks
byu/Glittering_Fig4548 inMilitaryFinance
Posted by Glittering_Fig4548
9 Comments
Because you can’t live in your stocks. And buying allows you to build equity over time without the risk of your landlord forcing you out or raising the rent.
Thought this was WSB for a sec
1. Leverage – no bank is going to give you triple your salary to “invest” in Palantir, but they will if it’s for a house
2. VA loan – the ability to put zero money down for a house is a benefit that can’t be realized if you’re trying to buy AAPL
3. Tax benefits – have fun with your short and long term capital gains taxes buying individual securities. Meanwhile, a service member gets to deduct mortgage interest off their MAGI.
Why not both?
Why not both?
Lol go on Zillow and look at the appreciation of previous home sales. You’re looking at 30-100+% returns over a decade.
I prefer a roof over my head instead of a cardboard box. That’s why I bought a house.
I also still max out 2 IRA’s and 1 TSP.
A lot of people like to buy homes that way they have option for customization. If they know they’re gonna be in a place for a long period of time, and it’s an easy way to get a leveraged return.
Not everything in life is maximized for the greatest return on investment, some people maximize for a life well lived
I would like to point out you listed three single stocks and an index fund. Only 4% of stocks out performed treasury bills over the long-term. So by buying single stocks, you’re more likely to underperform the same market you’re investing in.
If you’ve never maxed your capital gains exemption on a home sale I can see why you’d think this way
You’re just not very good at assessing real estate prospects.