Stocks versus real estate
I never considered real estate before, so somebody who knows more about it, please correct me....
If I put 40,000 down on a $200,000 house...with mortgages as cheap as they are, and I use the rent money to more than cover the mortgage (and never pay off the mortgage, due to inflation and arbitrage of mortgage costing less than rent), won't I make a ton of money? If the price of my house were to double in the next 10 years (thats a big if), it would be worth $400,000...but all I put into it was $40,000. Thats a ten-bagger. On top of that I use the excess rent to take care of the house.
That seems like a really great return, can the s&p still beat that?