- #1
SlurrerOfSpeech
- 141
- 11
In the hottest of hot real estate markets you may see a house price go up 1x over 5 years and the owner may be able to capture 0.75x of that (after we subtract costs of property taxes, remodels, HOA dues, etc.). On the other hand, during a Bull Market in stocks there is the potential to for your holdings to appreciate 3x, 5x, 10x, 20x, 100x, etc., in completely liquid assets with no holding costs. Furthermore, if you own dividend-paying stocks then you make money even if there's a Bear Market, whereas in a sinking real estate market you start losing money because you can't rent the house for more than the mortgage costs.