Thought Experiment: Would you rather have a $1 million home or a $1 million dollars in stocks/bonds/CD's/Land?
When's the last time you had to water your stock?
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Comments
2 Comments so far
Personally, I would prefer to have the $1 million in the "other" investments, since a $1 million dollar home in my area of the country is much more than I need/desire.
However, if my decision was between renting or buying a $1 million dollar home…I might change my mind. The tax-free growth, potential for tax deductions, and rent avoidance might make up for the extra maintenance costs.
There is also the middle ground where you leverage a portion of your money to buy the home and then buy the "other" investments with the remainder. This plan, of course, assumes that you can get more long term return from your "other" investments than you are paying in interest on your mortgage and that you can hold both for the long term.
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