Comments on: Why most people think it is less risky to invest on the house market instead of the stock market http://www.thefinancialblogger.com/why-most-people-think-it-is-less-risky-to-invest-on-the-house-market-instead-of-the-stock-market/ This is where your finance takes place Thu, 20 Nov 2008 18:13:41 +0000 http://wordpress.org/?v=abc By: The Financial Blogger http://www.thefinancialblogger.com/why-most-people-think-it-is-less-risky-to-invest-on-the-house-market-instead-of-the-stock-market/#comment-190 The Financial Blogger Sun, 01 Jul 2007 14:40:03 +0000 http://www.thefinancialblogger.com/why-most-people-think-it-is-less-risky-to-invest-on-the-house-market-instead-of-the-stock-market/#comment-190 David, this is definitely a huge debate to determine if you are making money or not with your main residence. Canadian Capitalist wrote about it about two weeks ago. I'll probably revisit this topic in the future. Cheers, FB. David, this is definitely a huge debate to determine if you are making money or not with your main residence. Canadian Capitalist wrote about it about two weeks ago. I’ll probably revisit this topic in the future.
Cheers,
FB.

]]> By: David http://www.thefinancialblogger.com/why-most-people-think-it-is-less-risky-to-invest-on-the-house-market-instead-of-the-stock-market/#comment-188 David Sat, 30 Jun 2007 20:22:11 +0000 http://www.thefinancialblogger.com/why-most-people-think-it-is-less-risky-to-invest-on-the-house-market-instead-of-the-stock-market/#comment-188 Also, most people discount the costs of maintaining their investment. Stocks usually cost little to maintian, a home has many unrecoverable costs associated with it, that are not factored into the final tally. Also, most people discount the costs of maintaining their investment. Stocks usually cost little to maintian, a home has many unrecoverable costs associated with it, that are not factored into the final tally.

]]> By: The Financial Blogger http://www.thefinancialblogger.com/why-most-people-think-it-is-less-risky-to-invest-on-the-house-market-instead-of-the-stock-market/#comment-186 The Financial Blogger Sat, 30 Jun 2007 18:00:18 +0000 http://www.thefinancialblogger.com/why-most-people-think-it-is-less-risky-to-invest-on-the-house-market-instead-of-the-stock-market/#comment-186 FT, I agree that they don't necessarily buy their house in an investment perspective. The point was more to show that regular people would lose money on their property if property's price would be listed on a daily basis. Most people will buy and hold their property for a while and then make money. However, they can't do that with their stocks! Thomas : I'm glad to see that you consider a mortgage as a leverage loan. Most people don't and I think that ignorance is a major risk. Cheers, FB. FT, I agree that they don’t necessarily buy their house in an investment perspective.
The point was more to show that regular people would lose money on their property if property’s price would be listed on a daily basis.
Most people will buy and hold their property for a while and then make money. However, they can’t do that with their stocks!
Thomas : I’m glad to see that you consider a mortgage as a leverage loan. Most people don’t and I think that ignorance is a major risk.

Cheers,
FB.

]]> By: FrugalTrader http://www.thefinancialblogger.com/why-most-people-think-it-is-less-risky-to-invest-on-the-house-market-instead-of-the-stock-market/#comment-185 FrugalTrader Sat, 30 Jun 2007 14:29:09 +0000 http://www.thefinancialblogger.com/why-most-people-think-it-is-less-risky-to-invest-on-the-house-market-instead-of-the-stock-market/#comment-185 FB, regular people don't shop for their primary residence based on appreciation. They buy based on what they like, what they can afford, what's good for their kids, and what's pretty. People buy their homes based on feelings just as much as people buy stocks on emotion. For example, put an ugly house in a great appreciating neighborhood.. what happens? Nobody will buy except for the keen eyed investor. FB, regular people don’t shop for their primary residence based on appreciation. They buy based on what they like, what they can afford, what’s good for their kids, and what’s pretty.

People buy their homes based on feelings just as much as people buy stocks on emotion.

For example, put an ugly house in a great appreciating neighborhood.. what happens? Nobody will buy except for the keen eyed investor.

]]> By: Thomas http://www.thefinancialblogger.com/why-most-people-think-it-is-less-risky-to-invest-on-the-house-market-instead-of-the-stock-market/#comment-183 Thomas Sat, 30 Jun 2007 03:06:30 +0000 http://www.thefinancialblogger.com/why-most-people-think-it-is-less-risky-to-invest-on-the-house-market-instead-of-the-stock-market/#comment-183 A house is typically a family's single largest asset (and requires leverage to even purchase it). That's A LOT of concentration risk! A house is typically a family’s single largest asset (and requires leverage to even purchase it). That’s A LOT of concentration risk!

]]> By: The Financial Blogger http://www.thefinancialblogger.com/why-most-people-think-it-is-less-risky-to-invest-on-the-house-market-instead-of-the-stock-market/#comment-181 The Financial Blogger Fri, 29 Jun 2007 14:08:45 +0000 http://www.thefinancialblogger.com/why-most-people-think-it-is-less-risky-to-invest-on-the-house-market-instead-of-the-stock-market/#comment-181 MDJ, however, people will perform extensive researches before buying their house as it is a major purchase. MDJ, however, people will perform extensive researches before buying their house as it is a major purchase.

]]> By: MillionDollarJourney.com http://www.thefinancialblogger.com/why-most-people-think-it-is-less-risky-to-invest-on-the-house-market-instead-of-the-stock-market/#comment-180 MillionDollarJourney.com Fri, 29 Jun 2007 13:27:55 +0000 http://www.thefinancialblogger.com/why-most-people-think-it-is-less-risky-to-invest-on-the-house-market-instead-of-the-stock-market/#comment-180 FB, note that a primary residence is usually purchased based on emotional reasons and not because it's a great investment. FB, note that a primary residence is usually purchased based on emotional reasons and not because it’s a great investment.

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