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Old 29.04.2020, 11:48
EPMike EPMike is offline
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Re: Should I buy a home or invest? I just reached 200k in savings and they are sittin

where is fmf? I have to take over.

Forget real estate. Why:
  1. Too much hassle (maintenance, management)
  2. All your eggs in one basket (no diversification)
  3. No liquid. You can sell stocks and have the money in less than a day. Try that with RE.
  4. Low returns (compared to stocks)
  5. Highly leveraged (3-5x)

Just invest in an broad index ETF or a fund (fundsmith) and forget about it for 10 years.

IMHO: real estate is about sentiment and not about economics. While I do own an apartment and currently building a house, I still believe real estate is fun, it gives you a nice feeling, it gives you a place to be happy, but not a good FINANCIAL investment.

If really want to invest in real estate than choose a REIT or some other product which avoids all the above disadvantages expect for low returns.
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