I know you need a ton more info to make the determination (interest rate, monthly payments, etc.) but I am no expert and could never come up with the numbers). And thus, we’d just assume everything would be pretty average.
It’s a very difficult question to word…. and even more difficult for me to solve.
I would suggest you to buy a house if you have the kind of earnings to payoff its loan within 10 years. Whenever you sell it after 10 years, you would have made significant investment. Do not forget that you saved on rent while living in the same house.
a house would be a better investment in the long run, but 10 years is kind of not long enough. Usually people will have a house for longer than that. Like 30.
A home mortgage payment can be written down on your taxes. So if everything else is equal that will end up costing you less money. Then at the end of the 10 years you can sell it for the same amount.
difficult to solve but you actually solved it yourself within the question, because they both made 20%, and you live in your house so you are killing 2 birds with one stone. With the stocks you'd need to rent, an additional expense which would lower your total return
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You can't live on Wall Street. But you will live on main street. So buy a house. Investing in yourself is always a smart choice.
If your goal is long-term capital appreciation, mathematically, stocks will give you a better return....but of course you cannot LIVE in a stock portfolio in the meantime!
http://www.cbsnews.com/news/history-says...
Property is the king of all investment...
