You can forget that buying a house is the best investment you can make. That says Chris Reining, who is a dollar miljonier on his own merits.
Buying a home has long been considered one of the best investments you can make. Unlike rental, all the money does not disappear in others' pockets, but you save each month to yourself by amortization.
But there is a much better place to stop the money to maximize returns - on the stock market. It claims Chris Reining, who himself scrapped a fortune of millions of dollars before retiring 37 years old. He calls the housing purchase 11 years earlier for "probably the worst financial decision" he ever taken. This writes Business Insider.
It took him three years to save the $ 40,000 cash effort to buy a house near Madison in the state of Wisconsin.
"The lesson is that everything I thought about buying was completely wrong, and since I did not count on my life's biggest financial decision, it became double losses - the property was sold for less than I paid, and I missed the potential return on $ 40,000 ", he writes on his blog.
For Business Insider, he develops his thoughts and refers to striking statistics:
Between 1890 and 2012, the inflation-adjusted return on a house was 0.17 percent.
During the same period, inflation-adjusted return on the stock market was 6.27 percent.
Chris Reining's conclusion reads:
"Buy a house. But do not buy a house, live in it, and think it's the best investment. "