It's OK Chuck, it is complicated. It's lucky you did something right before you wrote this comment.Wow, what a fucking windbag. Any moron that tries to compare a diversified investment portfolio to a house having a bedroom in toronto and a kitchen in vancouver.
I disagree with everything this guys says..... Am I a professor ?? No. But I am retired at 40 so I must have done something right.
Maybe chuck is a pro Athlete or investment banker who managed to cash in his "chips" before Lehman Collapse.how the heck you retire when you're 40?
That is what a forced saving is. In addition you have to compare the after tax yield. Even though dividends and capital gains are taxed at a favorable rate the gain on the disposition of a principal residence is entirely tax free.Not really true toguy, stocks do better over the long run, many studies have confirmed this. However, in some ways you are right, I think more people make money out of their houses than via stocks simply because they stay permanenetly invested. The problem with stocks is that almost nobody can hang on to them permanenetly.
Ha ha ha.....guess folks who are looking at spending two or three million bucks on a condo are dissuaded by the "public housing" component in the development.Speaking of real estate, I heard that the Vancouver condos that housed the Olympics atheletes just went bellyup.
Yes, there have been studies taking everything into account. Biggies of course are the costs of home ownership - taxes, upkeep, insurance, security.That is what a forced saving is. In addition you have to compare the after tax yield. Even though dividends and capital gains are taxed at a favorable rate the gain on the disposition of a principal residence is entirely tax free.
It is real estate's ILLIQUIDITY that causaes people to do well in it! If they had a quote every minute, and all it took to sell was a $30 commission, people would do just as poorly in real estate as they do often in stocks.I think some important factors in buying housing for investment purposes is location and how long you can hold onto it (so you don't sell during low price cycles, thereby incurring capital loss). It can be a good investment, but it isn't very liquid, unlike a widely held and traded company on the stock market. As the moderator pointed out, research is key.
I know dozens of guys who have made millions as a builder, but they really don't know a thing about construction, by hiring subtrades to build a home, live in it for about 6 to 12 months, and then sell and make a quick $100 to $200 thousand, tax free!!!!!!!That is what a forced saving is. In addition you have to compare the after tax yield. Even though dividends and capital gains are taxed at a favorable rate the gain on the disposition of a principal residence is entirely tax free.