Quote:
Originally Posted by feel wrath
yeah, I'm not sure what 'skip the mortgage at the end of your life' means but...
- giant life equity in being able to stay in one place as long as you want...maybe not for some people, but definitely for me and I would think for most people with families
- it may not be the case in USA#1 but in most countries, the $$ value of property only goes up over the medium and long term and it's a significant opportunity to build wealth. I saw JOTS quoting 2% appreciation per year which may mean it isn't the case there but on average, in both the UK and Aus the value of average house has risen by 250-300% in the past 20 years. Given these gains are tax free on primary domicile they are hard to ignore and worth additional annual upkeep expenses and the opportunity cost of income you can make from the $$ you spend on the down payment
Idk about other places, it’s just a number I read about for the US. For the record, 2.2% over 50 years is nearly a 200% increase. I’ve never verified it or anything but it makes sense as an average for a fairly large country.
The point, though, is that you can get historically 8% gains from the stock market.
But if you want to look at just 00-20, the Dow was in the 10.Xk range in 2000, it’s now in the 29.Xk range in 2020, so roughly a 200% increase.
All in all, basically pick the thing you’re most comfortable with and go with it.