One of biggest issues I’ve personally had with Real Estate in general is the very large up front costs, arduous process and illiquidity involved in it. So many R.E. Owners and agents constantly say this property is worth X amount for instance. That’s only if you can find a buyer for that price and it closes. Stocks give an instant guaranteed price and you have your money instantly. No closing involved. 

I recently finally bought a Condo but I waited 5 years which based on my research was the right move. Instead of buying while all our other friends went R.E. Nuts telling us, “Renting is a waste of money”. I took the difference between what we paid in rent versus buying and invested in the stock market. That allowed me to have far greater market returns then a index fund or any real estate i could have bought. We are talking about 85% on average on a compunded basis between investing and trading even with all the losers too. 

I then used my margin from the investments to keep my stocks and borrow at a very low rate which cannot be changed. 

The friends overpaid since they put down the downpayment, closing costs, renovations, repairs and the homes are worth less even in a good neighborhood. The market over $400k has taken a big hit. My premise at the time was they were going to come down. 

We instead bought in a top location, premier building, and at a 30% discount from where it was priced just two years ago. Now all the building systems (it’s a condo) have been completely redone along with the hallways. maintence fees will go down at the end of this year. The other unit owners have already told me we bought at the bottom and now I’m looking at other apartments to buy and rent out if the price is right. 160 units and 1 rental available . They go very fast. 

Its not very difficult to pick winning stocks and get incredible returns. Just take me a bit of work, common sense and patience. 

Why don’t more people and Millennnials simply do the same as I’ve done?