Quote:
Originally Posted by Mike Oxlong
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.
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Leverage is definitely an advantage of real estate but you can also do the same with stocks/bonds. The difference is many mortgages you can put down only min 5% down (some places even zero down) while stocks/bonds I believe are higher. I'll have to check into this.