Quote:
Originally Posted by pepper24
Something to remember.........stocks/bonds since something like 1978 have beat inflation by 6-8% while housing has beat inflation by 1-2% points over the same period. In the short term (since early 2000), real estate has been the better investment. Don't have all your eggs in one basket.
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The thing you have to consider though is that when you buy a stock you are paying for it 100% with your own money. When you buy Real Estate your are generally using mainly the banks money. Any appreciation you gain from Real Estate is all yours even though the bank is providing you the money to purchase the home.
I agree it is important to diversify. However there are certain benefits to real estate that can make it more attractive.