Someone convince me why buying a house is a good idea?
I don't know shit about property but recently have been thinking about weighing between rent vs buy and I just can't make the math work to support buying.
The return on investment for a house seems just so much lower than cost of equity (12-15% year on year SPX). Any amount of down payment could be compounding at far superior long term returns than sitting on some illiquid levered housing asset appreciating at like 2% a year or something. I don't understand why someone wouldn't wait till much much older (when you want to diversify away from equities and when your house value is smaller/diluted relative to your net worth) before buying a house. I understand the diversification argument but I don't understand why you would lock up capital that would likely generate higher returns even against your house which is levered. And yes I know I'm assuming this bull run will continue.