House is it worth buying?
Aashutosh Yogi
Transfer Pricing & FEMA I Auditor I Financial Reporting I Ex-PwC I KPMG I EY
Exposing the finfluencers the Dark truth behind the Curtain?
The leverage Game:- The Banks would let you buy the house with a 20% down payment and with an 80% loan with a low rate of interest however in the Stock market most of the Finfluencers advertise that we have to invest in there rather than the house would never tell you that you can get the leverage advantage of 80% loan amount, Ops! sorry I forgot to mention the margin money concept which lets you buy on margin however if the Stocks dip you have to plug the Cash but it doesn't happen with houses.
As Peter said: - Because of Leverage if you buy the house in $1,00,000 at 20% down and we assume the house value increases @ 5% per annum then you are making a 25% return on your Down Payment. Also, the benefit of Tax Shied on Interest and Principal component.
Guess what? you also get a Tax deduction on housing tax and there's more just hang in there.
1. The House is the perfect hedge against inflation and a great place to hide out during the recession, not to mention the roof over your head. Then in the end, if you decide to cash in your house, you can roll the proceeds into a fancier house to pay taxes on your profit (Section 54 of Income Tax)
Chronology of Housing (Starting point)
You can have 40 years run in houses without paying taxes or if there are any taxes to be paid by now you are in a lower tax Bracket, so it won't be so bad.
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Conclusion: - houses are also better as you don't need to track the rate every day and see the ups and downs also human emotions have matters like seeing the parent getting old and accessing how the parents check into the public services and Accessing your school.
memory that is a sweetheart for us and all childhood things that splash before our eyes before wide shut down and all spent in our house.
Plus, no wonder people make money in Real estate and lose in the stock market
WHY?
Because they spend months buying the house and minutes choosing the stock they spend more time shopping for a good microwave oven than Shopping for a Good Investment.