Quote:
Originally Posted by RIJIMMY
both have risks, you can have shelter easily without buying a home, and you should only buy both if you can afford them. Neither are GUARANTEED. period
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You're missing the point.
Irrespective of income, the affordability of a stock is highly dependent on risk and return, while the affordability of a home is highly relative to location and market conditions.
I don't have to put any of my income into high tech stocks, but I do have to put income into housing. Most people can't afford to buy a house (or rental property) with cash so large loans are required.
Because of this dynamic, there is risk for both the lender and the borrower (in contrast, a business takes no real risk when it sells me shares of it's company) and as such both ends of the contract are regulated...this is very different from buying and selling equity shares.
That neither is GUARANTEED is an abstract point.
-spence
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