This is a limited view. For this one needs to include debt opportunity and tax. Try and get a $1mil loan at 95% LVR on shares. Good luck with that. With property this is often fine. Property lets you work at high leverage points due to its safer nature. In this way your $100k of shares might have a higher return but once you leverage to a $1mil house at that capital level, the smaller percentage return pays more overall.
Also in many countries you dont pay tax on residential property you live in which adds 15%-40% value as you take profits.
Completely agree on the heavy deployment of capital in many of today's property markets. The business and society cost of high house pricing is not discussed enough. I feel its a great way to stagnate an economy if we continue this.
This is a limited view. For this one needs to include debt opportunity and tax. Try and get a $1mil loan at 95% LVR on shares. Good luck with that. With property this is often fine. Property lets you work at high leverage points due to its safer nature. In this way your $100k of shares might have a higher return but once you leverage to a $1mil house at that capital level, the smaller percentage return pays more overall.
Also in many countries you dont pay tax on residential property you live in which adds 15%-40% value as you take profits.
Completely agree on the heavy deployment of capital in many of today's property markets. The business and society cost of high house pricing is not discussed enough. I feel its a great way to stagnate an economy if we continue this.