Quote:
Originally Posted by Weitz
... If house prices go up.
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Oh no I mean if you have a paid off house the value of the money tied up in your house is significant. So when people say they're living rent free, they often miss the income potential of the money in their house. If they invested that 500k they'd get a decent return even at a safe 3%.
If the value of your house goes up, your 500k would appreciate as well. But real estate returns are not quite as predictable or stable as money markets, GIC's etc. And the true deal breaker is liquidity. You can't sell a house with the click of a button for $9.99.